BST & Co. CPAs, LLP, an area accounting and management consulting firms, has released a series of year-end tax tips designed to help small businesses prepare for filing season.
Dawn Doherty is a partner at BST & Co. and a certified public accountant and tax expert with more than 30 years of experience. She began her career with the Internal Revenue Service.
Doherty shared the following tax considerations for Capital Region residents:
• Get a sense of where you stand.
Many families will see smaller refunds when they file their 2022 taxes because pandemic-related tax provisions, such as the expanded child tax credit and the dependent care credit, have expired and these credits revert to pre-pandemic 2019 levels.
Although tax tables and the standard deduction have favorably changed with inflation, taxpayers may still not have enough tax withheld or otherwise paid in throughout the year to avoid a balance due at tax filing time. Check your latest pay stub for taxable wages and withholdings. If underpaid, make an estimated tax payment on or before Jan. 15.
The IRS has a tax withholding estimator on their website that can help with a simple calculation, but it may not be useful for complex situations, pension income, or for nonresident alien status filers.