Important Tax Information for this Year

3/9/2022 3 minute read

2 Important things to know when filing your 2021 tax return

For most people, filing taxes can be a time of great stress. And with yearly changes at the IRS it can feel more difficult than ever to navigate the tax season. If you’re stressing about taxes you don’t have to navigate it alone. We’re here to share the latest information and resources available to help you get through this tax season with the least amount of stress.

Signs It’s Time for a Financial Check-up


 
1. Important new documents
Did you receive Child Tax Credit (CTC) payments and/or a third Economic Impact (stimulus) payment? If so, you should receive important letters from the IRS required to file your taxes:
 
  • Advance CTC letter 6419: Beginning December 2021 and into January, the IRS sent letters to people who received advance CTC payments. At the top of the letter it says “2021 Total Advance Child Tax Credit (AdvCTC) Payments” and “Letter 6419” on the bottom of the page. Here’s what you need to know:
     
    • This letter contains important information to ensure your tax return is accurate.
    • You should file a 2021 tax return to receive the second half of the credit. If you are eligible for a child tax credit but did not receive advance payments you can get the full credit by filing a tax return.

  • Third Economic Impact Payment letter 6475: In January 2022, the IRS began issuing letters to people who received a third stimulus payment during 2021. At the top of the letter it says “Your Third Economic Impact Payment” and “Letter 6475” on the bottom of the page.
 
2. Tax season delays
Due to the COVID-19 pandemic, the IRS is expecting numerous delays in processing tax returns this year. Here is what you can do to avoid delays in getting your tax refund:
 
  • File an accurate return by ensuring you have all the right documents when preparing your return.

  • Use e-file to electronically file your return. The IRS offers Free File for those of us comfortable filing our own taxes and with adjusted gross income of $73,000 or less. There are also free tax preparation sites through the IRS Volunteer Tax Assistance (VITA) program and the Tax Counseling for the Elderly (TCE) program where you can get assistance with e-filing. Prepare for a visit to one of these free tax preparation sites by reading the qualification and preparation details.

  • Choose direct deposit to receive your tax refund.

Our Financial Health Centers specialize in helping people build and maintain financial slack. While we may not be tax experts, we are here for you by connecting you with local resources in the communities we serve. This is just one of the many ways we can help.






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