Things to consider before filing your 2021 taxes
(Gray News) – With the 2022 tax season, the Internal Revenue Service wants to remind taxpayers of some things they need to consider before they need to file, and suggest free resources to help them get organized.
Don’t deposit until ready
While it’s important not to file your returns too late, the IRS says it’s equally important not to file too early as this could complicate the filing process and cause delays.
The agency says people who file before they have received all of their tax documents may risk making a mistake that could lead to processing delays.
Organize your tax documents
Tax records should be organized before filing to facilitate a complete and accurate tax return and to help find any missed deductions or credits.
You must ensure that you have all of your supporting tax returns 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 tax return if you worked in the gig economy
- Form 1099-INT if you received interest payments
- Documents and records reporting transactions in virtual currency or crypto
You must file a tax return to claim significant tax credits
The IRS says people who aren’t required to file a tax return should file one this tax season to potentially claim thousands of dollars in tax credits. By filing, individuals could claim:
- the Salvage rebate creditto receive any remaining 2021 stimulus payments you may not have received
- The rest Child tax creditif you had a child in 2021
- the Earned income tax creditthe government’s largest refundable tax credit for low-to-middle income families.
File electronically and choose direct deposit
The IRS suggests filing electronically, if possible, and choosing to get your return by direct deposit to collect your return faster. Taxpayers can file electronically through a tax professional, IRS Free File or commercial tax preparation software.
If you do not have a bank account, you can visit the FDIC website or use the National Credit Union Administration website Credit Union Locator Tool find an institution that allows them to open an account online.
For more information and advice before filing your tax return, you can visit the IRS website.
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