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
Child Tax Credit: Is it right for me?
In case you’re unfamiliar with the Child Tax Credit, it was initially structured in the Taxpayer Relief Act of 1997 as a $500 per child nonrefundable credit designed to provide relief to middle- and upper-middle-income families. Various laws since that time have modified the credit to expand its availability and benefit to more low-income families and to increase its value.
How does the American Rescue Plan Act of 2021 affect me?
The 2021 tax filing season has been quite a roller coaster ride so far. As if 2020 didn’t have enough built-in complications, the American Rescue Plan Act (ARPA) of 2021 adds even more twists for your tax return. The United States had provided about $6 trillion in total economic relief to the American people during the coronavirus pandemic, including the $1.9 trillion approved when President Biden signed the American Rescue Plan Act (ARPA) into law. Much of the American Rescue Plan’s economic relief is administered through the tax code in direct payments (stimulus checks) and expanded Child Tax Credit (CTC) in 2021.