Tax Season 2022: What You Should Know
The New Year is upon us, and with a new year comes a new tax season. The IRS has announced they will start processing tax returns Monday January 24, 2022. Tune in to listen to the things you should know to help you get prepared for tax season and get your refund on time.
Advance Child Tax Credit
If you have children, you may have decided to opt in for the advance child tax credit. This meant you received half the total credit amount in advance monthly payments between the months of July and December. If so, keep a lookout for IRS Letter 6419. It will provide you with information like the total amount received, which needs to be accurately reported on your tax return.
Good news! There is no longer an earned income floor to claim the credit. People with children who had no income in 2021 can still claim this credit by filing a tax return.
The IRS has sent out notice 1444, which gives information on the amount of stimulus payments received. They’ve also sent letter 6475, which will give information on the amount received through the economic impact payment sent in 2021. Again, these are important since they will help you accurately report the payments on your tax return.
Child and Dependent Care Credit
The child and dependent care credit has increased dramatically. You’re able to claim up to 50% of $8,000 in qualified expenses for one child and 50% of $16,000 in qualified expenses for two children. This is a refundable tax credit, meaning if you end up not owing any taxes, you may be eligible to receive any remaining credit amount in the form of a refund.
- File early.
- File electronically.
- Set up direct deposit.
- Have your IRS notices / letters ready.
- Free Filing Program: for those who made less than $73,000 a year in 2021.
- Volunteer Income Tax Assistance Program (VITA): for those who made less than $57,000 a year, have disabilities, have limited English proficiency, or are 60+ years old.
In this episode, Luis talks about the following and more:
- When tax season begins and ends
- IRS Notices that you’ll need before you file your tax returns
- Child Tax Credit and Child and Dependent Care Credit
- Tips to prevent delays in processing your returns
- Download the 3 Fundamental “Money Moves” to Make Before Turning 45
- LatinXcellence, more than a brand, it’s a movement!
- Luis’ Interview on Scripps National News
- IRS Child Tax Credit Update Portal
- IRS Economic Impact Payments
- IRS Free File
- IRS Volunteer Income Tax Assistance
- Luis’ LinkedIn
- Luis’ Twitter
- Luis’ IG