Easy steps to make tax filing easier in 2022
Another year has come and gone and here we are looking ahead to tax time. Are you one of the many taxpayers who struggle to have all your documents ready for the accountant to prepare your taxes? The Internal Revenue Service today encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps to help themselves file their federal tax returns in 2022.
Planning ahead can help you file an accurate return and avoid processing delays that can slow tax refunds.
Gather and organize tax records
Organized tax records make preparing a complete and accurate tax return easier. It helps avoid errors that lead to processing and refund delays. Individuals should have all their tax information available before filing to ensure the return is complete and accurate. They should notify the IRS if their address changes and notify the Social Security Administration of a legal name change.
Remember, most income is taxable. Recordkeeping for individuals includes:
Forms W-2 from employer(s)
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
Form 1099-INT for interest received
Other income documents and records of virtual currency transactions.
Income documents can help individuals determine if they're eligible for deductions or credits. Additionally, people who need to reconcile their advance payments of the Child Tax Credit and Premium Tax Credit will need their related 2021 information. Those who received third Economic Impact Payments and think they qualify for an additional amount will need their stimulus payment and plus-up amounts to figure and claim the 2021 Recovery Rebate Credit.
Taxpayers should also keep end of year documents including:
Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance Child Tax Credit payments
Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage
If you have an online account at IRS.gov, you may view your Child Tax Credit Payment dates and amounts as well as Economic Impact payments. This information will be needed to reconcile your Child Tax Credit payments and to claim the Recovery Rebate Credit if eligible. An Online Account securely provides tax account information on IRS.gov and helps provide important filing information.
Need help getting your documents organized? Let us know and we’ll send you a free tax organizer. Just call our office at (720) 949-7733.