Starting Monday, taxpayers can start filing and paying their taxes with the Internal Revenue Service for the 2021 tax year.
If you are eligible for a tax refund, filing earlier could mean your rebate will be paid quicker, but it’s possible your return may require additional review and take longer to process. Those who received Child Tax Credit payments in 2021 may want to hold off on filing, according to the IRS.
Here’s what you need to know when filing your 2022 tax return:
When is the deadline to pay taxes in 2022?
The deadline for filing is April 18. This is also the deadline for requesting an extension for an extra six months to file a return.
When should you receive your 2021 W-2?
In accordance with a 2015 law, employers are required to file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage of Tax Statements, with the Social Security Administration by Jan. 31. W-2’s are to be mailed no later than the end of January.
How long do tax refunds take to be paid?
It generally takes less than 21 days from the time the IRS approves the amount to receive a refund.
Those who file online can check the status of their returns after 24 hours have passed from the file date. This can be done on the IRS2Go app or through the “Where’s My Refund?” tool on the IRS website.
What is the fastest way to get a refund?
According to the IRS, the fastest way to get your tax refund is to have it electronically deposited for free into your bank account through direct deposit. Taxpayers can use it to deposit their refunds in up to three accounts.
“Eight out of 10 taxpayers get their refunds by using direct deposit,” the IRS website says. “It is simple, safe and secure. This is the same electronic transfers system used to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts.”
Combining electronic filing and direct deposit to file early produces the fastest refunds, according to the IRS, and some may be eligible to file electronically for free.
Smartphone apps, like TurboTax, H&R Block and TaxSlayer, can be a convenient way to file your taxes, but they usually charge a fee that can be deducted from your refund.
Why are tax refunds delayed?
Some tax returns can take longer to process for many reasons, the IRS says, including when a return:
Needs a correction to the Recovery Rebate Credit amount
Is incomplete
Is affected by identity theft or fraud
Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit using 2019 income
Includes a Form 8379, Injured Spouse Allocation, which could take up to 14 weeks to process
Needs further review in general
If more information is needed to process returns, the IRS will contact those taxpayers by mail.
Will there be an unemployment tax break in 2022?
Last year, the American Rescue Plan Act waived federal tax on up to $10,200 of unemployment benefits. The tax breaks only applied to those with a modified adjusted gross income of less than $150,000.
Congress has not passed a law offering a similar tax break on 2021 benefits, so if you did not withhold federal taxes from benefit payments, you may owe money or get less of a refund this year.
How to check on advance Child Tax Credit payments
Families who received advance Child Tax Credit payments will need to compare the amount they got in 2021 with the amount of Child Tax Credit they can claim on their 2021 tax return, according to the IRS.
If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount on your return.
However, if you received advanced Child Tax Credit payments that exceed the amount of credit you can claim on your return, you may need to repay the IRS some or all of that excess payment.
The IRS will send Letter 6419 in January to those who received advance Child Tax Credit payments in 2021. You might need to refer to this letter when you file your return, the IRS says.
For more information about the 2021 Child Tax Credit, visit irs.gov/advctc.
This story was originally published January 24, 2022 1:51 PM.
