5 things to remember when filing tax returns in 2022

(Gray News) – With tax-filing season underway, the Internal Revenue Service has created a checklist to help with any unique challenges generated by the unprecedented circumstances of the pandemic.

The IRS hopes this 5-point checklist will help people with the tax return process while avoiding delays.

First, the IRS encourages taxpayers to electronically file and choose direct deposit as soon as they have everything needed to file an accurate return.

Next, in addition to collecting W-2s, 1099s and other income-related statements, it is important people have their advance Child Tax Credit and Economic Impact Payment information on hand when filing.

Be on the lookout for the Advance CTC letter 6419 which contains important information that can help ensure the tax return is accurate.

The IRS is also issuing letters to people who received a third stimulus payment in 2021. The Third Economic Impact Payment letter 6475 will help people determine if they are eligible to claim the Recovery Rebate Credit for missing stimulus payments.

Thirdly, use online resources before calling the IRS as phone demands for assistance lines remain at record highs.

If you’re waiting on a 2020 tax return to be processed, the IRS offers this special tip to help with e-filing a 2021 tax return:

Make sure to enter $0 (zero dollars) for last year’s AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance Child Tax Credit or third Economic Impact Payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year’s AGI from last year’s return. Remember, if using the same tax preparation software as last year, this field will auto-populate.

Finally, the IRS reminds taxpayers there are many free resources available for help. For those looking to avoid the delays with a paper tax return, IRS Free File is an option. IRS Free File is available to any person or family who earned $73,000 or less in 2021.