Georgia Finance and Tax Professionals

2021 has ended, but a new challenge awaits: paying your 2021 taxes. Due to many new tax laws and tax credits, numerous things have changed for the 2022 tax season. Let's look at the most significant tax season updates for 2022.

Don't hesitate to contact us if you need help or have any questions, or click the button below to make an appointment with a seasoned tax pro in Villa Rica.

Important Dates for The 2022 Tax Season

Here are the critical dates listed by the IRS that taxpayers should remember for the 2022 tax season:

• January 14: IRS Free File is now available. Taxpayers may begin submitting returns through IRS Free File partners beginning January 24; tax returns will be submitted to the IRS starting on the 24th.
• January 18: This is the due date for tax year 2021 fourth-quarter estimated tax payment.
• January 24: The IRS officially begins the 2022 tax season. Individual 2021 tax returns begin being accepted, and processing begins.
• January 28: January 28 is Earned Income Tax Credit Awareness Day. This is to raise awareness of tax credits that are available to many people. In 2022, you also have the option to use the prior-year income to qualify.
• March 15: Due date for corporations and partnership returns
• April 18: Due date for filing 2021 tax return or requesting an extension and paying tax owed is extended due to the Emancipation Day celebration in Washington, D.C., even for individuals who live outside the area.
• October 17: This is the due date to file taxes for those who requested an extension on their 2021 tax returns.

Critical Information About IRS Processing Times in 2022

From January 1 to May 17, 2021, the IRS phone systems received more than 145 million calls, more than four times the number of calls received in a typical year, due to COVID-era tax reforms and larger epidemic difficulties.

Before contacting the IRS, customers are encouraged to check online resources. You can also call RWB Tax Services in Villa Rica, GA, for help.

The average tax refund was more than $2,800 last year. More than 160 million individual tax returns are projected to be filed for the 2021 tax year, the great majority of which will be done before the typical April tax deadline.

In general, the IRS expects most taxpayers to get their refund within 21 days of filing electronically if they choose direct deposit and their tax return is error-free. The Internal Revenue Service (IRS) encourages individuals and tax professionals to file online to speed up the return process. People should avoid filing paper returns whenever feasible to prevent processing delays.

The IRS is prohibited from issuing refunds for the Additional Child Tax Credit or the Earned Income Tax Credit before the middle of February. However, qualified taxpayers may submit their forms beginning on January 24. This extra period is provided by the law to assist the IRS in preventing false refunds from being distributed.

If the IRS systems identify a possible error or missing information, or there is suspected identity theft or fraud, some returns may require manual examination, which slows processing. Some of these circumstances require communication with taxpayers, while others do not. Because this activity involves special handling by an IRS employee, the IRS may take longer than the standard 21 days to process returns with errors. That is why it is critical to hire an experienced, local tax professional like RWB Tax Services in Villa Rica, GA, who knows all of the recent tax law changes and can make sure your return is error-free for the fastest return possible.

A Look at Tax Updates for 2022

Before filing your taxes this year, here are a few things that you should be aware of:

The charitable donation deduction has changed:

For monetary donations made to qualifying organizations in 2021, taxpayers who do not itemize deductions may be eligible for up to a $600 deduction for married taxpayers filing joint returns and up to $300 for all other filers.

Advance Child Tax Credit Payments Info:

Families who got advance payments will need to compare the amount of the child tax credit they will be able to claim on their 2022 tax return with the amount of the child tax credit they received in 2021.

On their 2021 tax return, taxpayers who got less than the maximum amount of their child tax credit will claim a credit for the leftover balance.

Qualified families who did not get advance payments in 2021 may still receive a lump-sum payment by submitting a 2021 federal income tax return and claiming the child tax credit. This includes families that don't usually file a tax return and families with no income.

The IRS will issue Letter 6419, detailing the total amount of advance child tax credit payments that filers received in 2021. You should keep this letter and any previous IRS letters concerning advance child tax credit payments with your tax records. Individuals can also see their child tax credit payment amounts by creating or logging into an IRS.gov online account.

Economic Impact Payments and Collecting the Recovery Rebate Credit

Based on their 2021 tax information, individuals who did not qualify for the third economic impact payment or did not get the entire amount may be eligible for the recovery rebate credit. However, they'll need to submit a 2021 tax return to claim the credit, even if they didn't have any income for 2021.

When filing their tax return, individuals will need the amount of their final economic impact payment, as well as any plus-up payments, to determine their exact 2021 recovery rebate amount owed.

The IRS will send Letter 6475 in early 2022, including the exact amount of the third economic impact payment and plus-up payments received. Individuals can also securely access their economic impact payment amounts by creating or logging into an IRS.gov online account.

Make Tax Filing Easier in 2022 With These Steps

The IRS recommends that taxpayers take the following steps to avoid processing delays and expedite refunds:

• Organize and collect your 2021 tax data, including Social Security numbers, Individual Taxpayer Identification Numbers, Adoption Taxpayer Identification Numbers, and the current year's Identity Protection Personal Identification Numbers valid for 2022.
• Check IRS.gov for the most up-to-date tax advice, such as how to reconcile advance Child Tax Credit payments or claim a Recovery Rebate Credit for missed stimulus payments. There is no need to make a phone call to the IRS and stay on hold for hours.
• Access personal tax account information, including balances, payments, and tax records, by registering or logging in securely at IRS.gov/account.
• To avoid a tax bill and related penalties, make your final anticipated tax payments for 2021 by Tuesday, January 18, 2022.
• Individuals can utilize direct deposit with a bank account, prepaid debit card, or mobile app and supply routing and account numbers.
• When you're ready, file an electronic tax return with RWB Tax Services in Villa Rica, GA, that is full and correct, and choose direct deposit for the fastest refund.

Gather and Organize Your Documents

Tax documents that are organized make it easier to prepare a correct tax return. It assists you in avoiding errors that cause processing delays, which slow down your return, and it may also help you locate previously overlooked deductions or credits.

Wait to file until you have all of your tax records, which may include the following:

• W-2 Form from any jobs you worked in 2021
• You may receive a 1099 form from a bank, issuing agency, or another payer. Examples include unemployment compensation, dividends, and distributions from a pension, annuity, or retirement plan.
• Form 1099-INT if you were paid interest
• Form 1099-K, W-2, 1099-MISC, or a different income report if you were self-employed or working in the freelance economy in 2021, along with any virtual currency transaction records
• Reconciliation of the advance premium tax credits for Marketplace coverage with Form 1095-A, Health Insurance Marketplace Statement
• If you're eligible to claim the Recovery Rebate Credit, please refer to Letter 6475, Your 2021 Economic Impact Payment.
• Please refer to Letter 6419, 2021 Total Advance Child Tax Credit Payments to reconcile your advance child tax credit payments.

Address changes should be reported to the IRS, and legal name changes should be reported to the Social Security Administration.

Remember that most income is taxable. This includes:

• virtual currencies,
• refund interest,
• unemployment income, and
• money earned from the gig economy.

Make Sure You've Withheld Enough Taxes

If you owed taxes or received a substantial refund last year, you may want to modify your withholding. Changing your withholding can save you money on taxes and allow you to retain more money each payday. In addition, changes in life, such as marriage or divorce, the birth of a child, or the addition of a second job, may necessitate a change in withholding.

Use the Tax Withholding Estimator to determine how much tax should be withheld from your paycheck. If you need to alter your withholding and submit a new Form W-4 to your employer, use this tool on IRS.gov.

Contact an Experienced Tax Professional in Villa Rica, GA

Our team at RWB Tax Services has over 50 years of combined experience. For over 13 years, they've helped clients in Villa Rica, Douglasville, Carrollton, and West Georgia get the largest tax refunds legally.

You can trust RWB Tax Services to complete your taxes correctly, on time, and at a reasonable cost. We can help you avoid costly tax mistakes in Georgia so you can prevent thousands of dollars in tax penalties. Don't hesitate to reach out to us by calling 770-456-9980 today.

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