I hope you and your family are staying healthy and well. I wanted to share some important tax updates and resources for you to be aware of for this 2021 income tax year.
Filing and Refunds
The IRS has announced taxpayers expecting to receive a refund during this year’s filing season may encounter delays. The earliest date taxpayers can file this year will be January 24, 2022. Tax filers are encouraged to file their taxes both electronically and as soon as possible, as individuals are still experiencing delays on last year’s paper tax returns due to IRS’s limited staffing amid the pandemic. The IRS offers a wide-range of electronic tools to assist all individuals with filing easily and on time. You can follow these quick steps to jump start your filing:
- Gather your tax records;
- Check that your Individual Tax Identification Number (ITIN) has not expired
For more information on how to easily file your taxes this year, and how to get ahead this season, click here to be directed to more steps and new resources for the 2022 tax season.
Child Tax Credit
Advance Child Tax Credit Payments in 2021 | Internal Revenue Service (irs.gov) – This link will provide you with an explanation of the advance, tools to manage your payments, the non-filers tool for families who ordinarily don’t have to file, FAQs and a way to check if you’re eligible.
*** Please Note ***
In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov online account to securely access their child tax credit payment amounts.
Economic Impact Payments
In 2020, Congress passed two pieces of legislation providing Economic Impact Payments (EIPs) to millions of Americans. Three EIPs were delivered via direct deposit or through the mail in a form of a check or prepaid debit card
If you didn’t receive the full Third Payment, you may be eligible to claim a 2021 Recovery Recovery Rebate Credit on your 2021 federal tax return. The IRS will be sending our Letter 6475 in early 2022 to a taxpayers address on file confirming the amount of the third EIP and any plus-up payments received for tax year 2021. This information will be needed to calculate your 2021 Recovery Rebate Credit when filing this year.
Unsure of which Economic Impact Payments you received? To find the amounts of your payments, securely access your individual IRS account online to view your first, second and third EIP at https://www.irs.gov/payments/your-online-account.
For further questions or concerns you may have regarding your EIPs, please visit the IRS Economic Impact Payment FAQ page here.
IRS Free File and Other Filing Resources
Filing your taxes can be a confusing process, but the IRS has online resources available to help taxpayers with questions and electronic filing assistance.
Remember tax filing season begins January 24, 2022, and the IRS Free File web tool is up and running to help you get ahead of the filing season. Visit the IRS website here to be directed to free services and other helpful checklists and FAQs.
The IRS Free File Program is available to tax filers who earned $72,000 or less in 2020. The software calculates and finds deductions, credits and exemptions for taxpayers.
Other IRS resources include:
- Locate a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) program near you,
- Find a professional tax preparer near you,
- And use the IRS’s Interactive Tax Assistant
Visit the IRS’s website here for more helpful checklists and FAQs.
IRS Tax Tips
While tax filing can be a difficult process, there are many helpful resources available through the IRS website at www.irs.gov and I encourage you to review their latest tax tips at https://www.irs.gov/newsroom/irs-tax-tips . My office and staff are here to assist with your questions and offer additional resources throughout this income tax filing season. Please don’t hesitate to reach out to us.
Stay up to date on any upcoming tax news by following #SchweikertTaxTips on Twitter!