With the new year comes a new tax payment deadline.
Some people have received both forms of payment.
The Internal Revenue Service (IRS) is encouraging taxpayers to start preparing now for their federal government tax refund in 2022.
The IRS says if you want to receive any payment faster, direct deposit gives taxpayers faster access to their refund than a paper check.
You will need a bank account for direct deposit.
The agency has made it clear when filing your federal taxes, there are special steps regarding economic impact payments and advance child tax credit payments.
Find the special letters from the IRS that we explain below.
Child tax credits
Families who received the advance will need to compare the advance amount child tax credit payments received in 2021 in the amount of child tax credit they are allowed to file on their 2021 tax return.
Taxpayers who receive less than they qualify for can claim a credit for the remaining amount of the child tax credit on their 2021 tax return.
Taxpayers who received more than they were eligible for may need to repay some or all of the excess payment when they apply.
In January 2022, the IRS will send Letter 6419 with the total amount of the child tax credit advance that taxpayers receive for the year 2021.
People should keep this letter and any other IRS letters about prepaying the child tax credit with their tax records.
You’ll need to file a 2021 tax return, even if you don’t normally file, to claim the credit.
Individuals will also need the amount of their third economic impact payment and any plus payment received to calculate their exact 2021 recovery credit amount when they filed their taxes.
Using the correct payment amount will help avoid processing delays that could delay refunds.
In early 2022, the IRS will send Letter 6475 containing the total amount of the third economic impact payment and any additional payments received.
We explain the time required to refuse to pay the child tax credit.
Also, what to do if you not receiving your child’s tax credit payment.
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https://www.the-sun.com/money/4231033/child-tax-credits-stimulus-checks-taxes-2022/ Everything you need to know about the child tax credits and the stimulus check tax in 2022