This year was a bit different when it came to taxes, with stimulus checks and advances on child tax credits.
Some people even received both of these beneficial breaks throughout the year.
Now the year is coming to a close, which means a new tax season is coming quick.
The IRS is suggesting people prepare now for the 2022 tax season.
Related: Who can claim a $1,400 stimulus check on their taxes in 2022?
Choosing direct deposit, which requires a bank account, is the quickest option to get your refund.
When it comes to filing taxes, there are additional steps for economic impact payments and advanced child tax credit payments.
Letters will be sent from the IRS about these payments.
2022 taxes and child tax credits
Families that collected child tax credit advancements in 2021 will need to know how much they received so they know what they can claim in 2022.
Related: When will I be able to file my taxes in 2022?
If parents got less money than what they were actually eligible for in 2021 then they may claim the difference.
If parents got more money than they were eligible for, they’ll need to repay the difference when they file.
Keep your eye out for a Letter 6419 in early January.
This will have your total amount for what you were paid in 2021.
Keep this letter and anything else sent from the IRS for your tax records.
Related: Stimulus Plus Up payments being sent before the end of the year, make sure your 2020 taxes are filed
2022 taxes and stimulus checks
Some people did not qualify for the stimulus checks this year, but they may be eligible for the recovery rebate based on their 2021 tax information.
If you don’t normally file taxes then you’ll need to next year to claim the credit.
People need to watch for a Letter 6475 from the IRS in January so they can see the total amount they were sent for the third stimulus check.
You’ll need that amount to calculate the correct rebate credit amount when you file your taxes.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected]