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Top five tips to keep in mind when filing taxes in 2022

Tax filing season opens on Monday, January 24, and now is the time to start receiving the required documents needed to fill out Form 1040.

The Internal Revenue Service (IRS) predicts a large number of federal tax returns for 2021.

Tax season opens on Monday, January 24

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Tax season opens on Monday, January 24

The IRS says more than 160 million individual tax returns for tax year 2021 are expected to be filed.

The agency has set January 24 as the filing start date because they want time to do programming and testing to make sure their systems run smoothly.

The updated program helps ensure that eligible people are able to claim the appropriate amount of child tax credit after comparing their 2021 advance credits.

For others, it is important to see if you are in line to claim the remaining amount stimulus money as a recovery discount credit when you file your 2021 tax return.

The IRS sent Letter 6419 with child tax credit information and Letter 6475 with economic impact payment information.

The agency has a checklist to help you speed up the tax return process and get your refund without delay.

1. Using electronic files

The IRS says to avoid delays in any tax refunds, you should report them correctly using Electronic files system.

Taxpayers should file electronically and opt for direct deposit as soon as you have everything you need to declare correctly.

If you use e-file, the software will help individuals avoid mistakes when doing math.

It guides you through each section of your tax return using a question and answer format.

2. Collect all the materials

In addition to collecting W-2s, Form 1099s, and other income-related returns, it’s important that you have the child tax credit (CTC) available in advance and economic impact payment information when apply for.

Letter 6419:

  • At the end of December 2021 and continuing through January, the IRS began sending letters to people who had received advance payments to the CTC.
  • The letter reads “Total Child Pre-tax Payment (AdvCTC) 2021” near the top and “Letter 6419” at the bottom right of the page.
  • The letter contains important information that can help ensure an accurate tax return.
  • Eligible taxpayers who received CTC payments first must file a 2021 tax return to receive the second half of the credit.
  • Eligible taxpayers who do not receive CTC payments in advance can claim the full credit by filing a tax return.

Letter 6475:

  • At the end of January 2022, the IRS will begin issuing letters to people who received a third payment by the end of January 2021.
  • The letter reads “Your Third Economic Impact Payment” near the top and “Letter 6475” at the bottom right of the page.
  • This letter will help individuals determine if they are eligible to claim credit discount recovery (RCC) for missing stimulus payments.
  • Those eligible for the RCC must file a 2021 tax return to claim their remaining stimulus funds.

3. Using online services

The IRS says telephone tax assistance remains at a record high.

It suggests using IRS.gov to get answers to tax questions, check the status of a refund or tax payment.

No waiting times and available 24 hours a day.

You can also follow the IRS on social media or get an email list.

4. If you are still waiting for your 2020 tax return to be processed

For those who are pending their 2020 tax return, the IRS has come up with this special tip to make sure the IRS accepts tax returns for processing.

Be sure to enter $0 for last year’s adjusted gross income (AGI) on your 2021 tax return.

For those who used a non-filer in 2021 to apply for a SEC first or a third economic impact payment in 2021, you should enter $1 as your previous year’s AGI.

Everyone else should enter the previous year’s AGI from last year’s affidavit.

Remember, if using the same tax preparation software as last year, this field will auto-populate, so be sure to correct the numbers.

5. Free resources available

The IRS reminds taxpayers there are many options for free help.

For those who want to avoid delays with paper returns, IRS Free File is an option.

There are products available in both English and Spanish.

The IRS Free File is available to any individual or family earning $73,000 or less in 2021.

Eligible taxpayers can also find free nationwide in-person tax preparation help through voluntary income tax support programme.

We explain Deadline for filing important tax returns.

More, Which states have an extended deadline to file your 2021 federal tax return.

Child Tax Credit stimulus payments will likely END as Senator Joe Manchin says he opposes Rebuild Better

https://www.the-sun.com/money/4513306/irs-tips-filing-2021-tax-returns-in-2022/ Top five tips to keep in mind when filing taxes in 2022

DevanCole

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