Last-minute tips ahead of Tax Day
Time is running out to file tax returns ahead of the 2022 deadline.
Tax Day is Monday but, with the right preparation, procrastinators still have time to file.
Financial advisors recommend working with a professional before filing to make sure there aren’t any mistakes and you get the biggest refund you can.
“People have classified things as income and it really isn’t income and they are paying taxes on this money,” Nicole Middendorf, the CEO of Prosperwell Financial, says.
There was also a major change this year — the child tax credit, which went up to $3,600 last year for children under 6 and up to $3,000 for kids ages 6 through 17. For those who chose the option to get half of that monthly, the IRS should’ve sent a 6419 notice to get the rest of the credit.
“That tells them the amount of credit that they already received. And that way, they can get the rest of the 50%,” Alejandra Castro, an IRS spokesperson, said.
Filers also should’ve received a 6475 from the IRS from the third round of stimulus payments.
“If you’re someone who is yet to receive your third round stimulus payment, you can actually claim it on your tax return,” Forbes Tax Analyst Kemberley Washington said. “And this is even the case if you received a partial payment, you may be entitled to some additional money.”
Experts also remind filers to not forget to deduct any donations made in 2021, even if they aren’t itemized.
“Don’t try to do this on your own. If you are investing in things, there’s reasons there are (certified public accountants) out there,” Middendorf added. “I mean, I am a wealth advisor. Am I competent to do my own tax return? Yes, but do I? No, because you don’t want to miss something.”
If you notice a mistake after the deadline, you can file an amended return with the IRS.
If you need more time to prepare your return, you can file an extension with the IRS for free online that can give you until Oct. 17 to file.