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Here’s what’s to know about the upcoming tax season

Posted on January 3, 2022

The CPAs at Teipen CPA Group strongly recommend that all taxpayers take important actions this month to help them prepare for filing federal tax returns in 2022.

There are new tax credits and deductions related to Economic Impact Payments and advance Child Tax Credit payments that you should be aware of.

Here’s what taxpayers should consider before filing:

Advance Child Tax Credit payments
Families who received advance payments will need to compare the advance Child Tax Credit payments that they received in 2021 with the amount of the Child Tax Credit that they can properly claim on their 2021 tax return.

  • In general, taxpayers who received less than the amount for which they’re eligible will claim a credit for the remaining amount of Child Tax Credit on this year’s tax return.
  • Taxpayers who received more than the amount for which they’re eligible may need to repay some or all of the excess payment when they file.
  • Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the Child Tax Credit when they file their federal income tax return. (This applies to families who don’t normally need to file a return.)

In January 2022, the IRS will send Letter 6419 with the total amount of advance Child Tax Credit payments taxpayers received in 2021. Be sure to keep this and any other IRS letters about advance Child Tax Credit payments with your tax records.

Economic Impact Payments and Recovery Rebate Credits
Individuals who didn’t qualify for the third Economic Impact Payment or did not receive the full amount may still be eligible for the Recovery Rebate Credit based on their 2021 tax information.

  • File a 2021 tax return, even if you don’t usually file, to claim the credit.
  • Taxpayers will also need the amount of their third Economic Impact Payment and any Plus-Up Payments received to calculate their correct 2021 Recovery Rebate Credit amount when they file. Be sure to use the correct payment amounts to help avoid a processing delay that may slow your potential refund.

In early 2022, the IRS will send Letter 6475 out to taxpayers which will contain the total amount of the third Economic Impact Payment and any Plus-Up Payments they have received. Be sure to keep this and any other IRS letters about their stimulus payments with other tax records.

You can also log in to your IRS.gov Online Account to securely access your Economic Impact Payment amounts. Go to IRS.gov/rrc for more information.

2021 Charitable deduction changes
Taxpayers who don’t itemize deductions may still qualify to take a charitable deduction of up to $600:

Direct deposit is the easiest and quickest way to get your refund:

Got more questions about this year’s tax filing rules and regulations?

You can always call or email us for answers to your questions, whether or not you are a client.

Or go to IRS.gov/getready.