It’s crunch time — as in, time to finally crunch your numbers if you haven’t yet, because Tax Day is less than a week away. Here are 7 tips to make the process run smoother:
It’s crunch time — as in, time to finally crunch your numbers if you haven’t yet, because Tax Day is less than a week away.
Some of those provisions, like stimulus checks and child-tax credit payments, resulted in immediate payoffs last year. Others, like the improved Child and Dependent Care Credit and the Earned Income Tax Credit, were designed to come during 2022 tax filing season — in other words, during the filing window that’s closing most places on April 18.
A sprint could backfire another way. If there’s a mistake, administrators at the backlogged IRS say that’s going to delay a refund. Back in January, IRS Commissioner Charles Rettig warned frustrations could be part of this year’s filing season. 2. If you want to file an extension, don’t be shy The IRS is expecting 15.2 million households to seek extensions this year. That’s accomplished with a so-called Form 4868 that can be filed electronically for free. Remember what you’re getting breathing room for: extra time to file a tax return through Oct. 17, not extra time to pay a tax bill.
3. Still waiting for last year’s return to get processed? Try the $0 trick Taxpayers waiting for their 2020 tax return to get processed should still file their 2021 return by the upcoming deadline or seek an extension, the IRS says. For information seeking the amount of last year’s adjusted gross income, put down $0, the agency says.
For the child tax credit, tax time is also when the IRS skims money off refunds to reconcile overpayments for households that got the advances but earned too much money. The credit previously paid up to $1,050 for a single child or eligible adult dependent, and $2,100 for two or more. After changes in the 2021 American Rescue Plan, that payout climbed to $4,000 for a single child or adult dependent and up to $8,000 for two or more.
The credit is an important boost for families with kids to feed, but the people benefitting the most from the temporary tax tweak are taxpayers without children under their roof.
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