The 2022 tax filing period kicks off on January 24th, allowing all taxpayers to file and send their 2021 returns. The IRS also announced that the deadline to file and pay the amount owed is April 18th instead of April 15th due to the Emancipation Day holiday.
Before filing back taxes, it's essential to know what to consider and the policies the IRS changed. Here, we provide the ultimate guide to filing taxes in 2022 by discussing critical items to note.
1. Child Tax Credit Payments
In March 2021, the IRS passed an American Rescue Plan, increasing the Child Tax Credit to $3,600 from $2,000. If you qualified for this program and didn't receive a cheque, you may get it in a lump sum by claiming the Child Tax credit. However, if you got advance payments, determine the proper amount to claim when filing your taxes.
When unsure how much money you received in an advance Child Tax credit, counter-check the letter 6419 sent by the IRS in January 2022.
In case you determine that you received less than the amount you qualify for, claim a credit on your 2021 tax return. Alternatively, repay the excess before the provided deadline if you received an excess amount.
2. Charitable Contributions
Another change to note when filing taxes in 2022 is charitable tax deductions. If you do not itemize your withdrawals (subtract them from your gross income), you may take a charitable deduction. However, the amount you are eligible for will depend on your status.
For instance, if you are married and file joint returns with your spouse, you qualify for $600.On the other hand, if you aren't and made cash contributions to a qualified organization, you are eligible for a $300 deduction on the amount you owe the IRS.
3. Claiming the Recoverable Rebate Credit
The federal government rolled out the third Economic Impact Payments in 2021 to cushion citizens affected by the COVID-19 pandemic. If you didn't qualify or were eligible and failed to receive the total amount, you can claim it when filing your 2021 taxes.
Still, if you qualified and got the funds, the IRS requires you to include the total amount in your return forms. Taking this precaution will help you prevent processing delays on your refund. It also ensures you provide accurate details on your tax records.
An ideal way to confirm the amount you received and what you can claim is using Letter 6475. Alternatively, log into your IRS online accounts to counter-check this information.
4. Child and Dependent Care Credit
The child and dependent care credits are available to citizens who paid for childcare to work or search for a job. You can also qualify if you paid the money to care for an adult-dependent unable to look after themselves.
If you fall in any of these categories, claim the child and dependent care credits to lower the taxes you owe. However, if you don't have delinquent taxes, the balance will go into your refund.
When unsure about the amount you spent on these expenses, counter-check your bank account statements. You may also get these details on your financial records or payment receipts.
5. Stimulus Checks
If you qualify for a stimulus cheque, you probably received your last one throughout 2021, beyond the 2020's tax filing deadline. When submitting your tax forms for 2022, it's vital to remember the IRS doesn't consider this payment as income.
Hence, you don't need to include it in your return documents. In case you didn't get the total amount you qualify for, you can claim them as part of the refund.
Contact Tax Industry to File Your 2021 Returns
Filing taxes in 2022 may be tricky since there are various aspects to consider. At Tax industry, we can help you determine how much you owe the IRS for 2021. We will also identify the deductions and benefits you qualify for then ensure you claim the necessary refunds. Call our offices today for help with filing your tax returns. or other special tax situations.