With the start of a new year, we wish you all the best and that you accomplish the goals set for yourself for 2023. But with a new year comes a new Tax Season, and we need to be ready for it. Because of that, it’s better if you don’t leave for later what you can do now.
Here is the information that you need to know this Tax Season:
Every person should remember to gather the following forms to help simplify everything:
- When you have an employer: fill out Form(s) W-2.
- When you don’t have an employer or receive payments, not for your employer: fill out Form(s) 1099, some examples could be:
- If you earned $500 or more in nonemployee compensation, you should receive a Form 1099-NEC.
- If you received a state or local tax refund during the previous year, you should expect to receive Form 1099-G
- If you received other income statements for workers in the gig economy (Uber, Lyft, etc.), you should receive a 1099-K or 1099-MISC.
But what should you do when you are a business owner?
That type of business you have will tell you what taxes you must pay and how to do it. Nonetheless, these are the essential pieces of information that you will need:
- Financial Statements that contain the Profit and Loss and Balance Sheet statements as of December 31st, 2022. If you don’t have these documents, we will ask you for details of Income and expenses and reports associated with your bank balance, loans, etc.
- All items (new vehicles, copiers, computers, etc.) were purchased and/or sold during the last year.
- Information about the owners included name, address, country of residence, and ownership as of December 31st, 2022.
- Necessary forms depending on your type of business taxes: Income Tax, Estimated Taxes, Self-Employment Tax, Employment Taxes, or Excise Tax.
If you want to know more information about this, schedule a 15-minute free call with us at LegacyFreeCall.com
