First-time filers see an average of $2,323 in federal income tax refunds

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One month into the 2022 tax season, the IRS has released a timely update on the progress of tax filings.

Many report a fairly painless experience, with the average depositor earning $2,323.

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The Covid pandemic has created special tax considerations for the 2022 seasonCredit: Getty

This is based on the nearly 9 million refunds processed by the agency as of February 11.

Tax filing season for 2021 began on January 24, 2022.

Below we explain what you need to know.

What is the fastest way to deposit?

If you’re not one of the 9 million Americans who have already filed and received their taxes, there are a few things to consider.

Above all, if you are undecided about direct deposit or paper return, go for direct deposit, says the IRS.

Taxpayers who request direct deposit see their refunds in less than three weeks.

On the other hand, paper returns often have wait times between six and eight weeks, according to the IRS.

The IRS offers free basic tax preparation through its Volunteer Income Tax Assistance (VITA) and Senior Citizens Programs Tax Counseling (TCE).

Where are the 2022 returns?

On February 18, 2022, the IRS released more details on the amount and timing of federal tax returns.

The IRS said it had received 26.4 million individual tax returns as of February 11, 2022.

As of the same date, about 23.4 million individual tax returns had also been processed.

While there is no reason to expect any major delays, it should be noted that the IRS is dealing with a backlog of 2020 returns that are still unprocessed.

In addition, certain tax credits triggered by the covid pandemic require special attention.

What could hold 2022 tax returns?

The IRS has signaled that filers may experience repayment delays if they establish errors in accounting for economic impact payments released as part of the Covid stimulus.

Specifically, filers must report any third stimulus payments, sent in early 2021 by the Biden administration, and any advanced child tax credits.

Advanced Child Tax Credits, also endorsed by Biden, were sent as monthly payments to families starting in July 2021.

Antonio Brown, a Detroit-based CPA, told the Detroit Free Press, “My clients seem to be getting their refunds as long as they don’t have an earned income tax credit.”

“As long as the tax returns account for economic impact payments and prior child tax credit money,” Brown said, “I haven’t yet seen any issues or holders that relate to these reimbursements.

What is IRS letter 6419?

If filers are wondering how to properly account for third stimulus payments or child tax credits when filing, they should look for IRS letters 6419 and 6475.

IRS letter 6419 tells the filer the total amount of 2021 advance child tax credits they received and confirms the number of eligible children used to calculate each monthly payment.

Families who received advanced child tax credits must do two things, the IRS explains.

First, they must file a 2021 tax return.

Second, they must compare the advance payments received in 2021 with the amount of child tax credit they can claim for 2021.

Letter 6475 is the second notice that IRS filers should seek.

It describes the total amount of the third stimulus payment received for the 2021 tax year, which filers must determine if they are eligible to claim the recovery rebate credit on their 2021 filings.

The US Sun also covered when you can expect your 2022 return and why your refund may be delayed.

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