Now that the 2022 tax season is open, the Internal Revenue Service reminds taxpayers to make sure they have what they need before they file their return and to consider the free resources available to help them get organized.
This press release is part of a series entitled Guide to tax time, a resource to help taxpayers file an accurate tax return. Additional help is available at IRS.gov or in Issue 17Your federal income tax.
Don’t deposit until ready
Although taxpayers should not file their return late, they should not file their return prematurely either. Individuals who file their return before they have received all the correct tax return documents risk making an error that could lead to processing delays.
Typically, year-end forms start arriving in the mail — or are available online — in January. Taxpayers should consider them carefully. If any of the information submitted is inaccurate or not available, taxpayers should contact payer immediately for correction or to ensure they have their current mailing or email address.
New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 child tax credit. This letter includes the full amount of advance child tax credit payments. 2021 children issued and the number of eligible children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 child tax credit when filing their 2021 tax return and avoid processing delays. The IRS reminds people to verify this information carefully.
Most eligible people have already received their third Economic Impact Payment and will not include information about it when filing. However, people who did not qualify for a third payment or did not receive the full amount may qualify for the 2021 Salvage rebate credit based on their 2021 tax situation. They will need the full amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can connect to their IRS online account to see the total amount of the Third Round Economic Impact Payment or wait to receive IRS letter 6475.
Those not required to file must file a tax return to claim large tax credits
The IRS is strongly encouraging people who aren’t required to file a tax return to file one this season to potentially claim thousands of dollars in tax credits. When filing a tax return, individuals could request:
- the Salvage rebate credit receive any remaining 2021 stimulus payments that they may not have received (for example, if they added a new child or another dependent in 2021);
- The rest Child tax credit they are eligible for, including monthly payments they might not have received (for example, if they added a new eligible child in 2021); and
- the Earned income tax creditthe federal government’s largest refundable tax credit for low- to middle-income families (nearly tripled in amount for filers without children).
View IRS Account Information Online
Individuals can use their IRS online account Securely access their federal tax account information, including payments, tax records and more.
To facilitate the filing of a return, individuals can consult:
- The total amounts of economic impact payments issued for the 2021 tax year
- The total amount of child tax credit advance payments
- His adjusted gross income from his last tax return
- The total of estimated tax payments they made and refunds applied as a credit
They can also now make and track payments and manage communication preferences, including the ability to go paperless and request email notifications for certain reviews available online. Taxpayers are encouraged to create an online account, if they haven’t already, or log in to access this information and explore these new features.
Important tax documents for 2021
Organized tax records make it easier to prepare a complete and accurate tax return and can help taxpayers find the deductions or credits.
Taxpayers should wait to file their return until they have all of their supporting tax returns, including, but not limited to:
- W-2 Forms from Employer(s)
- 1099 forms from banks, issuing agencies, and other payers, including unemployment benefits, dividends, and distributions from a pension, annuity, or retirement plan
- Form 1099-K, 1099-Misc, W-2, or other tax return if they worked in the gig economy
- Form 1099-INT if they received interest payments
- Other documents and revenue records reporting virtual currency or crypto transactions
- Form 1095-A, Health Insurance Market Statement, to reconcile anticipated premium tax credits for market coverage
- Letter 6419, 2021 Total Child Tax Credit Advance Payments to reconcile Child Tax Credit Advance Payments
- Letter 6475, 2021 Economic Impact Payment, to determine eligibility to claim stimulus rebate credit.