Get Ready for Taxes: 6 Easy Steps Taxpayers Can Take Now to Make Filing Taxes Easier in 2022
Then we leave for you in this brief summary, the simple steps you must follow to file your taxes, and stay up to date with the federal government. You just need to do the following:
- Gather and organize tax files
Organized tax records make it easy to prepare a complete and accurate tax return. Helps avoid mistakes that can result in processing and refund delays. Individuals should have all of their tax information available before filing to make sure their return is complete and accurate. They must notify the IRS if their address has changed and notify the Social Security Administration of a legal name change.
- Remember, most income is taxable. Record keeping for individuals includes:
W-2 Forms from Employer (s)
1099 forms from banks, by issuing agencies and other payers, including unemployment compensation, dividends, distributions from a pension, annuity, or retirement plan
Form 1099-K, 1099-MISC, W-2, or other income statement for workers in the sharing economy
Form 1099-INT for Interest Received
Other Income Documents and Virtual Currency Transaction Records
Income documents can help people determine if they are eligible for deductions or credits. Additionally, people who need to reconcile their advance payments of the Child Tax Credit and the Premium Tax Credit will need your related information from 2021. Those who received the third Economic Impact Payment and think they qualify for an additional amount will need their payment of stimulus and additional amounts to calculate and claim the 2021 Refund Recovery Credit.
- Taxpayers must also maintain year-end documents that include:
Letter 6419, Total Amount of Child Tax Credit Advance Payments in 2021, to Reconcile Child Tax Credit Advance Payments
Letter 6475, Your 2021 Economic Impact Payment, to determine your eligibility to claim the Refund Recovery Credit
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments of the Premium Tax Credit for Marketplace coverage
Online Account securely provides your tax account information on IRS.gov; helps provide important presentation information
Individuals who have access to the account online can access the Child Tax Credit Update Portal (CTC UP) to obtain information about the dates and amounts of payments received. Taxpayers need this information to reconcile their Child Tax Credit upfront payments with the Child Tax Credit they are claiming when they file their 2021 tax return.
Eligible taxpayers claiming the 2021 Refund Recovery Credit can log into their account online to view the amounts of their Economic Impact Payments to claim the required credit upon filing.
People who have not yet created an online account should act soon. Those who have already done so should check to see if they can still log in without issue.
Taxpayers with questions about creating an account or resetting their username or password can find help at How to sign up for certain electronic self-help tools. People must act now if they need to create an account. If they can’t verify your identity online, there is a mail option they can use, but that takes more time.
- Taxpayers who have an online account can:
See the amounts of your Economic Impact Payments
Access the Child Tax Credit Update Portal (CTC UP) to obtain information about your advance payments of the Child Tax Credit
Approve or reject authorization requests from your tax professional.
Update your email address and choose to participate or opt out of paper notification preferences.
Taxpayers should make sure they have withheld enough taxes
People may consider adjusting their withholding if they owed taxes or received a large refund last year. Changing the withholding can help avoid a tax bill or allow people to keep more money each payday. Changes in life, marriage or divorce, the arrival of a child or accepting a second job, can also be reasons to change the withholding. Taxpayers can consider completing a new Form W-4 (SP), Employee Withholding Certificate, each year and when personal or financial situations change.
People also need to consider estimated tax payments. People who receive substantial unearned income such as income from self-employment, investment income, the taxable portion of Social Security benefits, and in some cases, income from pensions and annuities may have to make quarterly payments of estimated taxes. The last payment for 2021 is due on January 18, 2022.
People can log into their account online to make a payment online or visit IRS.gov/payments.
Taxpayer Personal Identification Numbers (ITINs) only need to be renewed if they are expired and need to be included on a U.S. federal tax return.
If an ITIN was not used on a U.S. federal tax return at least once in the 2018, 2019, and 2020 tax years, the ITIN will expire on December 31, 2021.
As a reminder, ITINs with the digits 70-88 in the middle have expired. Also, ITINs with the digits 90-99 in the middle that were assigned prior to 2013 have expired. People who previously submitted a renewal application that was approved do not need to renew again.
- Do you want a faster refund? A bank account speeds up tax refunds with direct deposit
Direct deposit allows people faster access to their refund than a paper check. Those without a bank account can learn how to open one at an FDIC-insured bank or through the National Credit Union Locator Tool.
Veterans can use the Veterans Benefit Banking Program (VBBP) to obtain financial services at participating banks.
- Volunteer to help eligible taxpayers file their returns
There has never been a better time to join the Voluntary Taxpayer Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA and TCE volunteers provide free tax return preparation to eligible taxpayers. With so many people facing financial changes this year, additional volunteers are needed to help them. In response, the IRS implements new ways to facilitate volunteer work.
Visit IRS.gov/volunteers to learn more and to sign up. After registering, you will receive more information about how you can join a virtual orientation.