IRS: Things to consider before filing your 2021 taxes
(Gray News) – With the 2022 tax season here, the Internal Revenue Service wants to remind taxpayers of some things they should consider before they need to file, and to suggest some free resources to help them get organized.
Don’t file before you’re ready
While it’s important not to file your taxes too late, the IRS says it’s just as important not to file too early as it could complicate the filing process and lead to delays.
The agency says people who file before they’ve received all of their tax documents can risk making a mistake that may lead to processing delays.
Organize your tax documents
Tax records should be organized ahead of filing to make a complete and accurate tax return easier and to help find overlooked deductions or credits.
You should make sure you have all of your supporting income statements before filing, including but not limited to:
- W-2 forms from your employer
- 1099 forms from banks, issuing agencies and other payers
- 1099-K, 1099-Misc, W-2 or other income statement if you worked in the gig economy
- 1099-INT form if you received interest payments
- Documents and records reporting virtual or crypto currency transactions
You must file taxes to claim important tax credits
The IRS says individuals who are not required to file a tax return should file one this tax season to claim potentially thousands of dollars in tax credits. By filing, individuals could claim:
- The Recovery Rebate Credit, to receive any remaining 2021 stimulus payments you might not have received
- The remaining Child Tax Credit, if you had a child in 2021
- The Earned Income Tax Credit, the government’s largest refundable tax credit for low to moderate-income families.
File electronically and choose direct deposit
The IRS suggests to file electronically, if possible, and choose to get your return via direct deposit to get your return back faster. Taxpayers can file electronically through a tax professional, IRS Free File or commercial tax prep software.
If you don’t have a bank account, you can visit the FDIC website or use the National Credit Union Administration’s Credit Union Locator Tool to find an institution that allows them to open an account online.
For more info and tips before filing your taxes, you can visit the IRS’ website.
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