The Internal Revenue Service (IRS) has stated that the 2022 tax filing season will begin on January 24th, 2022. That’s when the Internal Revenue Service (IRS) will begin taking electronic and paper federal income tax returns for the 2021 tax year. It’s the third coronavirus pandemic tax filing season, and it’s likely to be more complicated than the previous two.
Because April 15th is Emancipation Day, the due date for most taxpayers to file and pay is Monday, April 18th, 2022, rather than the usual 15th. Due to the Patriots’ Day vacation in those states, taxpayers in Maine and Massachusetts have until April 19th, 2022 to file their returns. Tornado victims in Illinois, Tennessee, and Kentucky, as well as wildfire victims in Colorado, will have until May 16th to file and settle their claims. Requests for extensions will be accepted until Monday, Oct. 17, 2022.
Some people who aren’t technically needed to file a tax return will have to do so in order to claim the 2021 Economic Impact Payment, sometimes known as a stimulus payment, and/or to reconcile advance Child Tax Credit payments, as they were last year.
What steps can you take to get a head start on filing? Keep an eye out for the standard W-2 and 1099 papers that you’ll need to file. However, most taxpayers should keep an eye out for two new IRS letters, one regarding 2021 advance child tax credit payments and the other about the 2021 stimulus payment.
You must balance the amount the IRS provided you in advance payments last year with the amount you are really due for the child tax credit. The majority of taxpayers received half of the 2021 child tax credit in monthly instalments in 2021, and will receive the remaining half when they complete their tax returns in 2022. The IRS began mailing out Letter 6419 in December to inform taxpayers of the total amount of advance Child Tax Credit payments received in 2021. When you file, you’ll need to refer to that. If you received less than the maximum amount you’re entitled to, you’ll get a credit for the difference on your 2021 tax return. If you received more money than you were entitled to, you may have to reimburse part or all of it when you submit your taxes.
The 2021 Economic Impact Payment, often known as the stimulus payment, works in a slightly different way. If you received the entire amount of your stimulus payment, you will not have to report it on your 2021 tax return. Individuals who got a third payment and/or plus-up payments in 2021 will begin receiving Letter 6475, Your Third Economic Impact Payment, in late January, according to the IRS.
While most people who are eligible for stimulus payments have already received them, this letter will assist consumers assess if they are entitled for the Recovery Rebate Credit for missing stimulus payments.
More than 160 million tax returns are expected to be submitted in 2021, according to the IRS. For taxpayers who choose direct deposit, most refunds will arrive within 21 days. Although you may still submit your return as of January 24th, the IRS cannot provide a refund involving the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. On January 14th, the IRS Free File programme will begin to taxpayers who earned $73,000 or less in 2021.
