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Explain what you need to pay taxes in 2022

TAX season is upon us and if you’re not an early applicant, it’s best to be prepared to make the process hassle-free.

The Internal Revenue Service (IRS) is encouraging taxpayers to use its online tools to file their 2021 federal tax returns.

The IRS is urging Americans to use the agency's online portal to file their taxes

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The IRS is urging Americans to use the agency’s online portal to file their taxes

Whether you’re filing electronically or using a tax professional, you’ll need to gather important information, including two key documents, to make the process easier.

Last year, the government sent Americans stimulus checks in the mail that would need to be checked. let’s find Letter 6475.

If you receive any advance child tax credit payment, you will also need to note that. Search Letter 6419.

Yes IRS Online Tools where you can see how much you owe, make and track payments, and view payment plan details.

The IRS says it’s ready to provide all the details so you can avoid delays and get your refund faster.

We have a checklist to make the process easier.

Personal information

All taxpayers will need a tax identification number to pay taxes.

  • Your Social Security Tax ID number or number
  • Your spouse’s full name, Social Security or tax ID number, and date of birth
  • Information about your stimulus payments, also known as economic impact payments (EIPs)
  • Identity Protection PIN, if one has been issued to you, your spouse or your dependents by the IRS
  • IRS Letter 6475: this outlines your 2021 economic impact payments to determine if you are eligible to claim the recovery discount credit
  • Route and account number to receive your refund by direct deposit or pay your balance

Dependent information

Parents and caregivers need to collect this information for tax returns.

  • Date of birth and Social Security number or tax ID number
  • Child care recordsincluding supplier tax ID number, if applicable
  • Income of your dependents and other adults in your home
  • Form 8332 showing that the custodial parent of the child is waiving the right to claim a child to you, the noncustodial parent, if applicable
  • IRS Letter 6419: this section outlines the child tax credit prepayments you need to report

Income

Not every form listed below is necessary to file taxes, but if it is relevant to you, make sure you have it ready when you’re ready to file.

  • Self-employed
    • Form 1099, Schedule K-1, income records to verify amounts not reported on new 1099-MISC or 1099-NEC
    • Records of all expenses: checkbook or credit card statement, and receipts
    • Business-use asset information to depreciate, such as cost and date of commissioning.
    • Home office information, if available
    • Records of estimated tax payments made: Form 1040 – ES

Rental income

  • Income and expense records
  • Rental property information for depreciation, such as cost and date of commissioning.
  • Records of estimated tax payments made: Form 1040 – ES

Retirement income

  • Pension, IRAannuity income: 1099-cheap
  • Traditional IRA Basis: this relates to how much you have contributed to an IRA that has been taxed
  • Social Security Income and RRB (Railway Retirement Board): SSA-1099, RRB-1099

Savings, Investments and Dividends

  • Income from interest, dividends: 1099-INT, 1099-OID, 1099-DIV
  • Income from the sale of stocks or other assets: 1099-B, 1099-S
  • Purchase date and record of your or other expenses in the property you sold, if the facility is not reported on 1099-B
  • Health Savings Account and long-term care reimbursements: 1099-SA or 1099-LTC
  • Expenses related to your investments
  • Records of estimated tax payments made: Form 1040 – ES
  • Transactions related to cryptocurrencies

Other income and loss

  • Gambling income: W-2G or records showing income, as well as expense records
  • Profile of the jury’s duties
  • Income and expenses according to hobbies
  • Awards and prizes
  • Trust income
  • 1099 royalties – MISC
  • Any other 1099 received
  • Records of alimony paid/received with ex-spouse’s name and Social Security number
  • State tax refund

Types of deductions

You can make some deductions, but not all of the ways below may apply to you.

  • Home ownership
    • Form 1098 or other mortgage interest statements
    • Real estate and personal property tax records
    • Receipts for energy-efficient home improvements
    • All other 1098 series forms
  • donations
    • Amounts donated to churches, schools, other charities
    • Cashless charity donation record
    • Mileage for charitable or medical purposes
  • Medical costs: amount paid for health care, insurance and for doctors, dentists and hospitals
  • Health Insurance: Form 1095-A if you signed up for an insurance plan through the Marketplace Exchange
  • Child care expenses
    • Fees to be paid to a licensed day care center or family daycare for an infant or preschool child
    • Amount paid to a babysitter or provider who cares for your child under the age of 13 while you work
    • Expenses are paid through a flexible spending account dependent care at work
  • Fees for K-12 teachers: receipts for class expenses for teacher
  • State and local taxes
    • Amount of state and local earnings or sales taxes paid, less payroll deductions
    • Invoice showing the amount of vehicle sales tax paid and/or personal property tax on the vehicle
  • Retirement and other savings
    • Form 5498-SA showing HSA contributions
    • Form 5498 showing contributions to an IRA
    • All other 5498 string forms: 5498-QA, 5498-ESA
  • Federal disaster declaration
    • City/county you lived/worked/have property in
    • Property damage support records. For example, appraisal and cleanup costs
    • Records of rebuild or repair costs
    • Reimbursement of insurance or claims to be paid
    • FEMA support information
    • Check the FEMA website to see if your county has been declared a federal disaster area

The filing deadline to file a 2021 tax return or extend filing and paying tax owed is Monday, April 18 for most taxpayers.

We share two important tax rules new retirees need to know.

More, 10 tax credits to cut your federal tax bill or boost your refund up to $47,200 this filing season.

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https://www.the-sun.com/money/4589182/what-you-need-file-taxes-2022/ Explain what you need to pay taxes in 2022

DevanCole

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