The IRS will begin accepting tax returns on January 24th, so here are some tips to stay in the know and on top of your money this year:
- File early, file accurately: There are a ton of things about tax returns that are out of the filer’s control. The best way to ensure you don’t end up lagging behind, is to stay ahead! Filing early will let you get your return earlier, but it also helps make sure that if there are any issues, you won’t be late fixing them.
- Dependent Care Credit increases: The Child and Dependent Care Credit was expanded from 35% to 50% in 2022, meaning that you could increase your refund by as much as $4,000 per dependent.
- Direct Child Tax Credit Payments: The IRS will send you Letter 6419, which details the amount of advanced monthly payments you received in 2021. These payments were calculated based on your 2019 and 2020 returns, so your return could vary wildly depending on changing employment and income.
- Claim a Recovery Rebate Credit: If you were skipped in any of the Economic Impact Payments since the onset of the COVID-19 pandemic, you can file to receive those payments now in your return.
- Don’t forget your Earned Income Tax Credit: The American Rescue Plan helps you by increasing your max EITC available to $1,502, which means workers from 19-65 are eligible. To qualify, your 2021 earned income must be below $21,430 for an individual, of $27,380 if filing jointly.
These tips will help your personal tax return come back on-time and correct!
