The Internal Revenue Service kicked off the 2022 tax filing season with an urgent reminder to take extra precaution this year to file an accurate tax return electronically to help speed refunds. More than 160 million individual tax returns for 2021 are expected to be filed, with most before the April 18th deadline. You can file for an extension before that date if needed. Here’s what you should know for this year’s tax season.
- The IRS said there may be delays in processing 2021 tax returns because of a greater need for manual processing in some cases.
- Individuals who didn’t qualify for the third Economic Impact Payment or did not receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 tax information. They’ll need to file a 2021 tax return, even if they don’t usually file, to claim the credit.
- Millions of Americans in 2021 applied for jobless benefits. State unemployment agencies were also paying out an extra $300 each week up until September. All that counts as taxable income for 2021, unlike in the year prior when the first $10,200 of those payments were tax exempt. That means any benefits you received last year are subject to full taxation.
- Families who received advance payments will need to compare the advance Child Tax Credit payments that they received in 2021 with the amount of the Child Tax Credit that they can properly claim on their 2021 tax return. Those who received less than the amount for which they’re eligible will claim a credit for the remaining amount of Child Tax Credit on their 2021 tax return. Individuals who received more than the amount for which they’re eligible may need to repay some or all of the excess payment when they file.
If you’re getting a tax refund this year, click here for some great ways to spend it wisely and get ahead financially!
