Get Ahead of the Game: IRS Important Tax Information Enclosed 2022
As the new year approaches, everyone is gearing up for the annual tax filing season. It’s never too early to start planning and preparing for this important task. The Internal Revenue Service (IRS) has already released valuable information for the upcoming tax season, and you need to be aware of it to stay ahead of the game.
Key Changes for Tax Year 2021
The IRS has announced a few key changes for the tax year 2021, which will impact individual taxpayers. The standard deduction has increased to $12,550 for single taxpayers and $25,100 for married couples filing jointly. Additionally, the maximum contribution limit for 401(k) plans has been increased to $19,500.
One important change that affects taxpayers with dependents is the Child Tax Credit. The credit has been increased to $3,000 per child aged 6 to 17 and $3,600 per child aged 5 and under. Furthermore, the credit has been made fully refundable, which means that families with little or no tax liability can receive the full credit amount.
IRS Milestones to Keep in Mind
It’s important to note that the IRS has set a few milestones for the upcoming tax season that taxpayers should keep in mind. The agency plans to begin accepting and processing tax returns for the 2021 tax year on January 24th, 2022. Additionally, the deadline for filing individual tax returns is April 18th, 2022, which gives you a few extra days to file.
If you’re expecting a refund, the IRS recommends filing your tax return electronically and using direct deposit for faster processing and receipt of your refund. The agency aims to issue most refunds within 21 days of receiving your tax return.
How to Avoid Common Tax Filing Mistakes
Tax filing can be a daunting task, and mistakes can prove to be costly. To avoid common mistakes, it is recommended to gather all your tax documents well in advance of the filing deadline. Double-checking your math and ensuring that all your information is accurate can save you a lot of trouble down the line.
Another common mistake is forgetting to claim all available tax credits and deductions. Make sure you research all available credits and deductions for your unique circumstances, such as the earned income credit or the student loan interest deduction.
Conclusion
Filing taxes can be complicated, but it doesn’t have to be with proper planning and preparation. Being aware of the latest IRS milestones and changes to the tax code can help ensure you’re staying ahead of the game. By avoiding common tax filing mistakes and claiming all available credits and deductions, you can make sure you’re getting the most out of your tax return. So, start planning early and get ahead of the game for the 2022 tax filing season.
