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Key information to consider for your taxes
Individuals and Families: Reduce the amount of Tax you
See the below guidelines for reducing your Tax Liability
W4 - if you owed taxes or received a large Refund, Adjust your withholdings
Life changes – getting married or divorced, welcoming a child, or taking on a second job - may also mean changing withholding.
Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer.
Reference:
Lower the amount of Tax You Owe
Tax credits and deductions are ways that can help lower the amount of taxes you owe.
All taxpayers should begin planning to take advantage of the credits and deductions they are eligible for when they file their federal income tax return next year.
Reference:
Credits and Deductions help lower your tax bill or increase your Refund
We'll work with you to help reduce the amount you owe with IRS allowed Credits & Deductions. Credits can reduce the amount of tax due. Deductions can reduce the amount of taxable income.
Family, dependents and students
Standard, retirement and contributions deductions
Itemized versus standard deduction
Inflation Reduction Act credits and deductions
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Filing Status and Dependents
Your filing status determines your filing requirements, standard deduction, eligibility for certain credits and tax.
Married?
Your filing status generally depends on whether you're married or unmarried on the last day of the year.
- Legally married - You must file as married for that tax year. Choose Married filing jointly OR Married filing separately
- Legally separated or divorced - file as single for that tax year unless you're eligible to file as Head of Household
- Separated but not legally separated or divorced - the IRS considers you married for filing purposes
Reference: IRS Website
Head of Household or Qualifying Surviving Spouse?
Head of household (HOH): If you're married or legally separated, one of you may be eligible to file as head of household if all of these apply:
- Your spouse didn't live in your home for the last 6 months of the year
- You paid more than half the cost of keeping up your home for the year
- Your home was the main home of your dependent child for more than half the year
Qualifying Surviving Spouse (QSS): You may qualify for 2 years following the year your spouse death.
Claiming Dependents?
Per the IRS, the term “dependent” means:
- A qualifying child, or
- A qualifying relative
The IRS provides more details and instructions with in IRS Pub 501. Below is the link for 2022. We'll update the 2023 tax season information once available.
Reference: IRS Publication 501
Tax Preparation Service
Pick the right team to do your taxes!
What to look for in a Tax Preparer
Pick the right team to do your Tax Return. Gray Hayes Tax & Financial Services has staff that is enrolled as an Enrolled Agent. An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service.
Reference:
National Association of Tax Professionals
Choose a Tax preparer Wisely
See the below video for more information - Choose a Tax Preparer Wisely. Watch the below IRS Video on what you should look for in a tax preparer:
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Due Diligence
A paid tax return preparer or firm can face potential consequences for not meeting the due diligence requirements. We must meet specific due diligence requirements if we are paid to prepare a tax return or claiming any of the below tax benefits:
- Earned income tax credit (EITC),
- Child tax credit (CTC), additional child tax credit (ACTC), credit for other dependents (ODC),
- American opportunity tax credit (AOTC),
- Head of household (HOH) filing status
Visit the IRS site for more tools such as Your Tax Record, Where is my Refund, and Signing into your Tax Account: https://www.irs.gov/
