Did you know that tax season commences on Monday, January 24, 2022, which means that American income-earners can start filing this early to avoid any inconveniences? However, since the deadline is still months away, specifically on Monday, April 18, 2022, there's still plenty of time to carefully go over your tax returns with an accountant so that every record is in order and you will not experience processing delays.
In a media statement, IRS Commissioner Chuck Rettig advised taxpayers that there could be potential problems during tax season 2022 because of a few COVID-related tax legislation, such as the Advance Child Tax Credit payments and the American Rescue Plan stimulus payments. He also confirmed that they expect a bigger backlog this year than the previous filing season.
Rettig said that he understands if taxpayers might become frustrated with this year's tax filing process. However, he assures the public that the IRS employees will commit to doing "everything possible" with the resources provided for the agency.
Here are some things to remember for tax season 2022:
E-filing and direct deposit options are better.
Taxpayers who manually file their tax returns and choose a cheque payment for their refund payments should consider going online and opting for direct deposit straight to the bank. According to Raphael Tulino of the IRS, paper filing and refunds are no longer practical, especially in this pandemic.
Tulino said that those who still opted to file the traditional way during tax season 2021 are still waiting for the processing of their tax returns. However, those who electronically file can expect a normal processing time of fewer than 21 days.
Make sure you have your IRS letters.
Aside from the usual IRS forms, such as the W-2, Form 1099, and your income statement from work, you should also have the Advance CTC letter 6419 if you are a parent who collected Child Tax Credit payments. The IRS started mailing these out in late December 2021 and will continue until the end of January 2022.
The Child Tax Credit letter has all the information on the advance payments from July to December 2021. Taxpayers will need to attach this document to facilitate the release of the second half of the payments once they file their tax returns.
The IRS has also mailed out the Third Economic Impact Payment letter 6475, covering the stimulus check payments given during the pandemic year. The IRS said that some taxpayers might still be eligible for "plus-up" payments, which should be detailed in this letter.
If you've placed the wrong amount for these benefits, it will trigger a manual review that will delay the processing of your returns and refunds for weeks.
Tax Season 2022, culmination of three years of the pandemic
Mark Steber, a tax information officer, said that this year's tax season will be vastly different from the previous years because it is the "culmination of three years of the pandemic." Other taxpayers also got a dependent care tax credit, where they could get more money back if their actual tax returns exceed more than the taxes they have to pay to the government.
The expert also said that many people had shifted jobs that could also change their benefits. Some Americans may have also given more charitable donations this year that could make them eligible for more refunds.
The IRS official site has an IRS Free File feature to help taxpayers make an accurate filing. However, this feature will only appear for the accounts of taxpayers who make less than $73,000 in 2021.
