Tax season is upon us once again. As you prepare to file your 2021 tax return, watch out for important dates, changes, and correspondence from the IRS.
When can I file my taxes?
The IRS has recently announced that they will begin accepting and processing 2021 federal income tax returns on Monday, January 24th, 2022.
When is this year’s filing deadline?
For most filers, federal income taxes are due on Monday, April 18th, 2022. This differs from the usual April 15th date to accommodate Emancipation Day, a holiday observed in Washington, D.C. on Friday, April 16th.
As Massachusetts and Maine both observe Patriots Day on April 18th, residents of these states will have until Tuesday, April 19th to file and pay their taxes.
Filers affected by FEMA-declared disasters will have until Monday, May 16th to file. This filing and payment extension will be granted to anyone living in counties declared federal disaster areas, including tornado and storm victims in Arkansas, Illinois, Kentucky, and Tennessee, as well as victims of the wildfires in Colorado.
I never received my third stimulus payment. Can I claim it on my 2021 return?
Yes. In order to receive your payment, you will need to file a 2021 tax return to claim the amount as a Recovery Rebate Credit.
The IRS will be sending out Letter 6475, titled “Your Third Economic Impact Payment,” in the coming weeks to individuals who received or were eligible to receive the third stimulus payment in 2021.
If you were eligible but did not receive your payment, or only received a partial amount, the letter will help you to determine your eligibility for the Recovery Rebate Credit as you prepare your 2021 tax return.
Even if you did receive your third economic impact payment, you should save your Letter 6475 (and any other IRS correspondence), as it will help streamline your tax filing process and ensure the accuracy of your return.
Will the Advance Child Tax Credit Payments I received in 2021 affect my federal tax return?
We recently published a blog post on this topic. You can read about advance child tax credit payments and your 2021 tax return here.
I don’t meet the income requirements to file a return; should I file anyway?
Possibly; it may be in your best interest.
If you did not receive your third stimulus payment, you’ll need to file a return in order to claim the Recovery Rebate Credit, regardless of whether or not you are required to file.
Additionally, non-filers who received advance child tax credit payments in 2021 (or who were eligible to receive them but did not sign up to receive the monthly payments) must file a 2021 return in order to receive the remaining amount of the credit owed to you.
If you receive Letter 6475 or Letter 6419 from the IRS, you will need to use the information contained therein to claim the credits for which you are eligible.
The IRS does not consider stimulus payments or advance tax credit payments to be taxable income, so claiming the Recovery Rebate Credit or Child Tax Credit will not negatively impact a filer’s eligibility for government benefits such as SNAP, TANF, SSI, or WIC.
Should I expect a delay in receiving my tax refund?
Yes. Officials in the US Treasury Department have predicted a frustrating tax season for taxpayers and tax preparers alike, citing “enormous challenges” faced by the IRS.
With a dramatically reduced staff after losing approximately 25% of its workforce due to recent budget cuts, the IRS is starting the 2022 filing season still inundandated by a massive backlog of prior year returns. Due to these challenges, taxpayers can reasonably expect delays this tax season.
To help mitigate this risk, the IRS stresses the importance of filing electronically with direct deposit. Filers should also take care to accurately report the correct amount of economic impact payments and advance child tax credit payments received in 2021; this will reduce the risk of filing errors that could further delay receiving a refund.
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