It's Tax Time Again: Are You Ready?

A small sign with the word TAXES in block letters sits on a pile of US money.

The 2022 tax season in the United States officially began at the end of January, but the IRS is saying that this year's taxes will be challenging due to a variety of factors. If you need assistance with new tax laws or IRS audits, our network of dedicated, experienced attorneys will be able to help you 24 hours a day, 7 days per week through our Legal Protection Plans for Individuals and Families. Learn more about the benefits of our subscription plans and read on for a some basic 2022 tax tips:

Will there be COVID-related tax delays?

The IRS is warning that COVID-19 and funding issues are going to make this tax season a challenge for the agency. The IRS is recommending that you file as early in the tax season as you can and to avoid submitting paper returns if at all possible. You can also speed up your refund by choosing to have your refund direct deposited. The IRS says that most returns filed electronically have refunds deposited within 21 days.

Are W-2s Delayed?

The deadline for mailing W-2s is January 31, 2022, so if you are a W-2 employee, you should have received your tax documents at the end of January or beginning of February. If you didn't receive these documents yet, contact your employer and/or your HR department as soon as possible.

What Is The Recovery Rebate Credit?

Recovery Rebate Credits let you lower your taxes or get a credit for your Economic Impact Payment if you didn't get one last year. If you received less than the full amount or didn't qualify for the third Economic Impact Payment, you may be able to claim the Recovery Rebate Credit. All taxpayers will receive a letter from the IRS (Letter 6475) detailing the total amount of Economic Impact Payment you received in 2021.

Are There Tax Breaks for Unemployment Payments This Year?

Unfortunately, no. The temporary tax break for unemployment benefits that was available in 2020 was not renewed for the 2021 tax year. For 2020 taxes, the tax break applied to those with an Adjusted Gross Income less than $150,000 who got unemployment benefits in 2020.

What About Child Tax Credit Payments?

If you received advance Child Tax Credit payments in 2021, watch your mail for IRS Letter 6419 which details the amount of Child Tax Credits sent to you in 2021. The IRS began mailing these letters in December of 2021. You can also access this information at the IRS web site.

Are There Any Changes to Filing Deadlines?

The deadline to file your tax return is April 18, 2022, giving tax filers an additional three days to prepare tax return documents and mail them to the IRS. Tax filers impacted by tornadoes in Illinois, Tennessee, and Kentucky in December 2021 or by the wildfires in Colorado in 2021 have until May 16, 2022 to file their returns.

Taxes are tedious and can be complicated, but if you are a business owner, have an unusual financial situation or just have questions about taxes, a dedicated, experienced attorney through our legal subscription plans can address your questions and concerns about your taxes so you can scratch your taxes off your to-do list with peace of mind. Learn more about our legal subscription plans for individuals and families or for small businesses, or sign up today!