January 21, 2022
The IRS begins processing tax returns on Monday.
And says there are three things you should do before you file to ensure your return doesn’t get flagged and your refund delayed.
One — make sure you file electronically and choose direct deposit for your refund and most importantly – make sure your return is accurate. I’ve told you in several videos — filing quickly instead of accurately is a mistake that’s going to cost you time.
Two — to ensure you have an accurate return – make sure you have all your W2s, 1099s and other income related statements. The IRS says it’s important for you to also have that Child Tax Credit letter 6419 and Stimulus letter 6475 for the third federal stimulus payment that went out in April 2021. Those letters include your official record for how much the federal government paid you in monthly child tax credits and stimulus in 2021. That will help you accurately calculate your return. If you don’t want to wait for those letters you can also find that information on your IRS account on irs.gov
Three — to accurately file a 2021 tax return electronically — you normally need your adjusted gross income from your most recent tax return — which can be problematic if your 2020 tax return hasn’t been processed yet. If that’s you, the IRS says to ensure your 2021 tax return is processed, make sure you enter $0 for last year’s AGI on your 2021 return. For those who used the non-filer tool in 2021 to register for the monthly child tax credit, or third stimulus payment, you should enter $1 as your prior year AGI. If you are using the same tax preparation software as last year, this field will auto populate.
One extra tip – if you don’t want to pay for tax filing software – the IRS has a free tax filing program. You qualify if you make under $73,000. And there is free one-on-one tax filing help from a volunteer tax professional through the IRS if you generally make less than $58,000, you are a person with disability or are a limited English-speaking taxpayer.
More information about AGI if you’re missing 2020 tax return or you filed on the non-filer portal here.
More info about FREE help with your tax return from the IRS here.
