Tax Tips
Maximize your 2022 refund.
For the average filer, taxes can be confusing. Every year there seem to be more and more complex regulations. Here are some things to keep in mind to make the most of this year’s filing:
So many details associated with filing taxes are outside of a filer’s control, which is why you should prepare early and file a return that goes through without delay, accessing all the deductions and credits that can reduce tax liability and boost refund sizes. Specifically, make sure that you keep track of any correspondence received from the IRS because certain letters (detailed below) will contain documentation needed to accurately file a 2021 return that avoids disputes and delays.
To get started, contact H+S Accounting Tax today.
While people with income under a certain amount aren’t generally required to file a tax return, those who qualify for certain tax credits or already paid some federal income tax by having taxes withheld from a paycheck may qualify for a tax refund available only by filing a return.
Good organization could be the difference between owing money to the IRS and getting a refund on your taxes.
How should you start organizing?
We can help you make sense of taxes; contact H+S Accounting Tax today.
4. Claim a Recovery Rebate Credit if you were skipped.
The IRS has disbursed three rounds of Economic Impact Payments to eligible Americans since the onset of the coronavirus pandemic, and the third and final round was distributed in 2021. Filers who received that third payment will receive Letter 6475 detailing how much was received, and that total will need to be reported on your return.
Individuals who didn’t qualify for a third Economic Impact Payment, or got less than the full amount, may be eligible to claim the 2021 recovery rebate credit based on their 2021 tax year information,” the IRS stated.
5. Take advantage of the Earned Income Tax Credit.
The American Rescue Plan tripled the maximum EITC available to $1,502. For the first – and only – time, both low- and moderate-income filers who do not have qualifying children may be eligible.
The EITC pool expansion means that childless workers as young as 19 years of age, as well as those aged 65 and older, are eligible for the EITC in 2021 if they meet income requirements. To qualify for the credit, earned 2021 income must be below $21,430 for an individual or $27,380 if married filing jointly.
To learn more about how to maximize your 2022 refunds, contact H+S Accounting Tax today.