Tax filing season opened on January 24, which means it’s time to get prepared. As you start collecting documents, here are a few things to keep in mind.
1. Submit tax information as soon as possible. Start collecting your necessary documents now and once you have all of your information, submit them as soon as you can. The sooner you gather and provide your documents, the sooner we can start on your tax return. This can really help the process go more efficiently.
2. There may be delays. The IRS has been experiencing a backlog for the past two years, causing delays in processing tax returns for 2019 and 2020. This is likely to continue for 2021 tax returns. Electronic filing is recommended for quicker processing.
3. Don’t throw away letters from the IRS. If you received a third “stimulus check” or any advance child tax (CTC) payments, you should be receiving letters from the IRS.
The economic impact payment “stimulus check” letters will be sent out in January. The letter applies to the third round of payments that were distributed between March through December 2021. The letter will show the amount received and could be used to help eligible taxpayers claim the 2021 recovery rebate credit.
The CTC letters were sent out in December and continued through January. The letter includes the total amount of child tax credit payments already received in 2021 and can be used to determine the remaining amount of the child tax credit that can be claimed on the 2021 tax return. If you received advance payments, you can also check payment amounts using the CTC Update Portal on IRS.gov.
These letters contain important information for your 2021 tax return. Do not throw them away! Save them with your other tax documents and send them to your Rodefer Moss tax advisor.
Don’t wait until it's too late. For more information on tax planning or other tax questions, contact the tax professionals at Rodefer Moss. We understand that each situation is different and can help you determine the best plan to remain compliant with current tax law.
