Tax filing season is here, and the IRS is encouraging individuals to assess their tax situation as the deadline to file approaches. Take a moment before you start on your taxes for the year to read up on the special steps involved in assessing your advance child tax credit payments, your economic impact payments and your charitable contributions. Not sure what we mean? We’re here to help! Here are some tax filing tips for 2022. Advance Child Tax Credit Payments All of the families that received advance payments via the Advance Child Tax Credit be required to compare the credits they received in 2021 with the total amount of the child tax credit they can actually claim on this tax return. That means:
- Families that received less than the full amount for which they were eligible will be able to claim a credit for the remaining amount on their 2021 tax return.
- Families that did not get any monthly advance payments in 2021 are still able to get a lump-sum payment by claiming that credit when they file their 2021 federal income tax return. This includes families that don’t normally need to file a return.
This month (January 2022), the IRS will send advance child tax credit payment recipients Letter 6419, which will show the total amount these families received in 2021. Families need to keep this (and any other IRS letters) about their advance child tax credit payments. You’ll need to present them, along with our other tax records, to whoever you use to prepare your taxes. Individuals are also able to create/log in to their IRS.gov online account to see their child tax credit payment amounts at any time. Economic Impact Payments Anyone who either didn’t qualify or didn’t receive the full amount of the third economic impact payment could be eligible for a recovery rebate credit based on this year’s taxes. People in this situation will need to file their 2021 tax return, even if they don’t normally file, to be eligible for this credit. Individuals will need to show the amount of their third economic impact payment, as well as any plus-up payments received, in order to calculate their correct 2021 recovery rebate credit. The IRS will send Letter 6475 in quarter 1 of 2022, which will contain the total amount of the third economic impact payment and any plus-up payments received. Filers will need to hang on to this letter, and any other IRS letters about their stimulus to present to their preparer. As above, you are able to create or log in to your IRS.gov account to access these records. Updates to The Charitable Contribution Deduction If you don’t itemize your deductions, you may qualify to take a deduction of up to $600. This applies to married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations.
We Hope You Make Use of These Tax Filing Tips!
Tax season can be stressful and confusing, and we hope you these tax filing tips help. Make sure your finances are in order and you have good records heading into tax filing time – and if you need help, we suggest reaching out to a qualified and professional tax preparer.
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