T ax season was over in April, so you’re good until next year, right? Well, ignoring your financial situation for another six months may not be such a good idea. If you take a little time to plan ahead now, you can spot surprises before they become an issue, make things more manageable next tax season, and maybe even save some money.
That’s where a mid-year tax check-up comes in. Make an appointment with us now to review your projected tax responsibilities, and you’ll still have time to put together a plan and adapt. This is especially important if you encounter some big changes in 2022 — marriage, divorce, death, job change, move, etc. Own your own business? A mid-year review also makes sense for your company, too.
Mid-Year To-Do List
Take your time conducting a thorough examination of your personal and/or business finances. Here are some items to consider:
1. Check Your Withholding
Make sure you’re paying the correct amount of taxes as you go. If you don’t make sufficient income tax payments throughout the year, you may get hit with significant penalties on your tax return next year. So if your income, job or life situation has changed, it’s time to take a look at the amount of taxes your employer is withholding … and update that amount if needed.
If you are self-employed, pay your own taxes or earn additional income through gig work or hobbies, you may also need to make quarterly estimated tax payments. Keep in mind that late or insufficient payments may lead to fines, so calculating the right amount for your quarterly payments depends on accurately predicting your annual income.
2. Review Your Bookkeeping
Good bookkeeping practices are essential, whether for personal or business purposes. Did you categorize that donation as a charitable deduction? Make payments to a college for your child? Take some time to review your personal bookkeeping records now to ensure they are accurate.
Businesses also need clear income and expense records for calculating total income for tax liability and for claiming tax deductions. Be sure to record tax-deductible business expenses as you go so that you don’t forget any.
If you use QuickBooks, you can request us to conduct an audit and clean-up of your accounts to be sure financial records are accurate and correct (see sidebar).
3. Make Name & Address Changes
If you’re getting married (divorced) or moving this summer, you’ll need to report the changes. Report name changes to the Social Security Administration as soon as possible. The name on your tax return next year must match what is on file at the SSA. If it doesn’t, it could delay any tax refund. To update your information, file Form SS-5, Application for a Social Security Card (available at SSA.gov), call 800-772-1213 or visit your local SSA office.
To change your address, you probably already filed a forwarding order with the U.S. Postal Service. However, you should also change your address with the IRS by filing Form 8822, Change of Address.
4. Plan Ahead for Year’s End
Now is the time to think ahead and plan accordingly. Are you worried about being on the edge of two tax brackets? Do you need to make a required minimum distribution from a retirement account? Will you need to spend down an HSA by the end of the year? Start scheduling these items early so you don’t have to rush come December.
5. Make an Appointment Today
You don’t have to spend your summer working on taxes instead of going to the beach. But you should consider taking just a little time to review your financial situation. We’re taking appointments now for mid-year tax planning if you’re ready to plan ahead. Call our office at 706-632-7850 to make your appointment today.
Do Your QuickBooks Need a Clean Up?
You may use QuickBooks on a regular basis, and never think twice about entering transactions. But there’s probably a good chance you’ve made an error or two without realizing it … and that can lead to problems down the road.
If you’ve never done a QuickBooks audit, or it’s been awhile, now’s a good time to schedule one. We can go over your accounts to:
- Look for coding errors.
- Adjust balance sheet totals to actual.
- Record any depreciation of assets.
- Confirm payroll and sales match reports.
- Correct any general input issues.
Once completed, we’ll print financial reports, review everything with you and go over any errors we corrected. Call our office today at 706-632-7850 to schedule your QuickBooks audit today.
2020 Census Update
According to the 2020 Census, Georgia’s population increased 10.6% from 2010 to 2020, with a total population of 10,711,908 in 2020. For Fannin County, the 2020 Census details include:
- 25,319 = total population (up 6.9% from 2010)
- 65.4 = population density (people per square mile)
- 83.7% = residents age 18+ (29.1% are 65+)
- 52.3 = median age
- $46,028 = median household income
- 77.8% = homeownership rate
For the city of Blue Ridge, the total population is 1,253 with a median age of 52.1. In the city of McCaysville, the population is 1,149 with a median age of 43.8.
If you have taxable income from any payer that doesn’t withhold tax for you, check to see if you need to make estimated tax payments.