What you should know when filing your taxes this year
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Tax season is underway and there are some new things you should get familiar with before you file.
The first thing you need to know this year is that tax experts are saying you shouldn’t wait to file because the Internal Revenue Service is backed up.
Mayela Moreno is a tax preparer and coordinator for a free tax prep program called VITA. It’s part of a United Way and IRS partnership for families with low-to-moderate incomes.
RELATED: United Way offering free tax prep services for qualifying low-income families
So, what's new this year? The Advanced Child Tax Credit payment. Parents who accepted Child Tax Credit payments in 2021 will have to report it.
“When we file, we need to know the correct amount because if it’s incorrect, the IRS will delay your refund,” Moreno said.
The IRS has already started sending out letter 6419, which includes the total amount of advance child tax credits you received last year.
It’s important to know that eligible families who did not collect any payments in 2021 can claim the full amount on their tax return. Also, if you are eligible for a stimulus check, but you’re missing one, you could claim a recovery rebate credit for 2020 or 2021.
If you did receive a third stimulus check last year, you need to keep an eye out for letter 6475 in your mailbox.
“It’s taking several months to the clients and to the people to get their refund if they have any of those amounts incorrect,” Moreno said.
Keep all your documents from the IRS because tax professionals say it’s meant to help you and them prepare your filing paperwork.
“My recommendation is for people to have a folder at home with all the important income forms,” Moreno said.
This year, there won't be any pandemic extensions for filing.
The hard deadline is Monday April, 18.
For more information, click here.
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