The new payments and relief measures rolled out last year make this tax season particularly challenging. In this post, we take a closer look at two of the most common obstacles taxpayers are navigating as they prepare to file their taxes.
Stimulus Payments
A lot has happened during the last 12 months, so it’s easy to forget that millions of American taxpayers received the third round of the Economic Impact Payment sometime after March 2021.
While this is understandable, you still have to report this payment on your tax return.
You can find the information about your payment on Letter 6475, a letter the IRS began sending in January 2022 to all taxpayers who received the third round of the Economic Impact Payments.
If you misplaced your letter or never received it, you can retrieve this information using the IRS online portal. Entering accurate information is important because any discrepancy can delay your refund for weeks or even months.
Advance Child Tax Credit Payments
Like stimulus payments, this was another measure designed to offer economic relief to families hit by the COVID-19 pandemic.
As the name suggests, this was an advance on the amount you usually get per qualifying child when you file your return each year.
However, distributing these payments in advance means that they are based on your income from 2020, so you have to reconcile them to make sure the amount you received is appropriate according to your current income.
To reconcile your payments, you’ll need another letter: letter 6419. Taxpayers who misplaced or didn’t receive this letter can get the information they need from the Child Tax Credit Update portal.
Delgados Insurance: We Make Tax Filing Easy
Whether you are an employee or in the gig economy, taxes don’t have to be complicated. At Delgado’s Insurance, we help you maximize your refund while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter).
