It’s tax time! With filing season beginning January 24, the Internal Revenue Service (IRS) reminds all taxpayers of several key things to consider when filing their federal tax returns this year.
The IRS offers a 5-point checklist that can help many people speed up the processing of tax returns and the delivery of refunds while avoiding delays:
- File an accurate return and use e-filing and direct deposit to avoid delays. Taxpayers should file their return electronically and choose direct deposit as soon as they have everything they need to file an accurate return. Taxpayers have many choices, including the use of a trusted tax professional. For those using e-file, the software helps individuals avoid errors when doing the calculation. It walks people through each section of their tax return using a question and answer format.
- For an accurate feedback, vscollect all the documents before preparing a tax return; make sure the information about stimulus payments and child tax credit advances is accurate. In addition to collecting W-2s, 1099s, and other income-related statements, it’s important that people have their advance child tax credit and economic impact payment information handy. when filing.
Advance letter CTC 6419: In late December 2021, and through January, the IRS began sending letters to people who received CTC advance payments. The letter says “2021 Total Advance Child Tax Credit (AdvCTC) Payments” at the top and “Letter 6419” at the bottom right of the page. Here’s what people need to know:
- The letter contains important information that can help ensure the accuracy of the tax return.
- Individuals who received CTC advance payments can also check the amount of payments they received by using the CTC Update Portal available on IRS.gov.
- Eligible taxpayers who received child tax credit advance payments must file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive child tax credit advance payments can claim the full credit by filing a tax return.
Third Economic Impact Payment Letter 6475: In late January 2022, the IRS will begin sending letters to people who received a third payment in late January 2021. The letter reads: “Your Third Economic Impact Payment” at the top and “Letter 6475” at the bottom right of the letter. page. Here’s what people need to know:
- Most eligible people have already received their stimulus payments. This letter will help individuals determine if they are eligible to claim the Recovery Rebate Credit (RRC) for missed stimulus payments.
- Those eligible for RRC must file a 2021 tax return to claim their remaining stimulus amount.
- People can also use the IRS online account to view their economic impact payment amounts.
The two letters – 6419 and 6475 – contain important information that can help people file an accurate 2021 tax return. If a return contains errors or is incomplete, it may require further review while the IRS corrects the error, which may slow tax refunds. Using this information when preparing a tax return electronically can reduce errors and avoid processing delays.
- Avoid long telephone delays; use online resources before calling the IRS. Telephone demand on IRS helplines remains at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check refund status, or pay taxes. There are no wait times or appointments – online tools and resources are available around the clock.
Additionally, the IRS offers several ways for taxpayers to stay up to date with important tax information:
- Waiting for a 2020 tax return to be processed? Special tip to help you file a 2021 tax return electronically: In order to validate and successfully submit an electronically filed tax return to the IRS, taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return. For those who are waiting for their 2020 tax return to be processed, here is a special tip to ensure the tax return is accepted by the IRS for processing. Be sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a non-filer tool in 2021 to register for a credit withholding tax for children or a third economic impact payment in 2021, they must enter $1 as their AGI from the previous year. All others must enter their previous year’s AGI from last year’s return. Remember that if you are using the same tax preparation software as last year, this field will auto-populate.
- Free resources are available to help taxpayers file their return. During this difficult year, the IRS reminds taxpayers that there are many options for free help, including many resources on IRS.gov. For those looking to avoid delays with a paper tax return, IRS Free File is an option. With Free File, leading tax software vendors are making their products available online for free as part of a 20-year partnership with the Internal Revenue Service. This year, there are eight products in English and two in Spanish. The IRS Free File is available to any individual or family who earned $73,000 or less in 2021. Qualified taxpayers can also find free one-on-one tax preparation help nationwide through Voluntary Tax Preparation Assistance. income tax (VITA) and tax advice for the elderly. (TCE).
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