Filing Dates, Complexities, and More of Tax Season 2022

U.S. Treasury officials said earlier this week that due to the coronavirus pandemic, staff shortages, budget cuts, and revenue backlogs for 2020 and 2021, the Internal Revenue Service will be facing “threatened” big challenge” for the upcoming tax season. Here’s what you need to know.

What triggered this warning from Treasury officials?

This isn’t the first tax return season of the pandemic – and that’s part of the problem. Treasury official told reporters in a phone call on Monday that in a typical pre-pandemic year, the IRS would start the filing season with a backlog of about 1 million orders. The latest data from the IRS shows that as of December 23, 2021, it has a backlog of 6 million unprocessed personal returns. Additionally, the IRS is understaffed and doesn’t have enough staff to handle the millions of taxpayer calls. Treasury officials have quick pin this to Republican legislators who blocked efforts to increase funding for the agency. President Biden’s Build Back Better Plan calls for an $80 billion investment in the IRS over 10 years, with the goal of improving customer service and enforcement.

What are the important dates to note?

The IRS will begin accepting and processing 2021 tax returns on January 24. The deadline to file tax returns is April 18 – three days after the usual April 15 deadline, due to the Holiday Day. Liberation in Washington, DC. In Massachusetts and Maine, residents will available until April 19 to file their federal return, since Patriots’ Day is celebrated on April 18.

How will the advance child tax credit affect the filing?

The Rescue America Plan passed in March 2021 increased the child tax credit to $3,000 for each child under 17, plus an additional $600 for each child under the age of six. This is a temporary rate and is for tax year 2021 only. Many families received their tax credit upfront, spread over the payments they received monthly from June to December, during when some choose to receive the full credit after they pay their taxes for the year. In some cases, due to a credit boost, people who normally do too little to file their taxes will need to do so for 2021.

Those who already receive monthly payments will see their write-off reduced when they file, and some may be owed money because of it. “That would certainly come as a surprise to everyone,” said Patrick Amey, a certified financial planner at Financial Advisory Service Inc., told CNBC. “And you won’t know exactly where you stand until you actually pay your taxes, due to the complexity of the calculation.” The IRS has begun sending letters to recipients of advance child tax credits, indicating how much they will receive in 2021 and the number of eligible children used to calculate those payments. Please keep this letter, as it will help in the tax preparation process.

Is there a way to speed up the application process?

Make sure you grade me and cross out your letters. Before you apply, triple-check all information – if the IRS’s systems catch any possible errors, your return will have to be processed by an officer, which does all the work for you. slow things. The IRS also encourages people to file electronically and provide direct deposit information, as it takes longer to cut and mail a refund check. If you have any questions, check the agency’s website before calling – last year, the IRS received more than 240 million phone calls between January and June and with less than 15,000 employees assigned When the service answered those calls, there was some pretty long wait times. For those who qualify, there are Free program can help with basic tax preparation: Volunteer Income Tax Assistance (VITA) and Tax Counseling for Seniors (TCE).

How long does it take to get a refund?

IRS speak that if taxpayers file electronically, choose direct deposit, and don’t have any problems with their tax return, they will receive their refund within 21 days of filing.