Earlier in October, the Internal Revenue Service issued News Release 2021-217 on steps taxpayers can take to make tax filing easier in 2022.
The first step the IRS recommends is gathering and organizing your tax records. Your Mason & Rich tax organizer, which we starting sending yesterday, can be an important tool in helping you gather your tax documents. It lists the tax documents provided last year and asks questions that can help identify new documents.
New documents that will be helpful for some taxpayers in 2022 will include Letter 6419- 2021 Total Advance Child Tax Credit Payments for those taxpayers who received up to 6 months of advance credit in 2021. Letter 6478 – Your 2021 Economic Impact Payment to determine if you can receive any additional amount.
In addition, setting up an online account with the IRS can give taxpayers access to their tax return filing history and listing of Economic Impact Payments and Advance Child Tax Credits. This requires identity authentication via phone number or code mailed to your address on record, so start registration early if you think you might like this feature.
Looking to avoid surprise tax bills? The Internal Revenue Service recommends adjusting your withholding or making estimated payments if you have substantial investment income, self-employment income, and taxable retirement benefits.
If you have questions, contact your accountant or follow us on LinkedIn to stay up-to-date on all of our posts.