HomeNews2022 Tax Season: You’ll Need These Documents to Maximize Your Refund

2022 Tax Season: You’ll Need These Documents to Maximize Your Refund

by Clayton Edwards
(Photo Credit: Photography by Phillip Rubino via Getty Images

Tax season officially starts tomorrow, January 24th. In the coming weeks, millions of Americans will begin getting their information together to file their taxes. Many of those will be hoping for a hefty refund from the government. Those who hope to get the most out of their tax returns need to be sure to have the proper documents before filing.

Every year, most American taxpayers use the same documents when filing their tax returns. They have their employer-supplied W-2 form which contains information about their income and withholdings. Additionally, taxpayers use one version of the 1040 form to compile their information to file. Some will use the 1040 SR or 1040 EZ forms while others will use the base 1040 form. These documents are the norm for millions of Americans. However, this year will be a little different. Taxpayers have to claim the money they received from the government in 2021. This will necessitate some new documents.

Tax Document for Stimulus Checks

In 2021, millions of American taxpayers received Economic Impact Payments or stimulus checks. The large payments were worth $1,400 per qualifying taxpayer and their dependents. Additionally, many taxpayers received a few smaller checks called plus-up payments. The IRS isn’t taxing the payments but taxpayers do need to claim them on their taxes. To make this easier, the IRS sent out letters detailing how much money each household or individual received in stimulus checks.

Additionally, it will help those who did not receive a check in 2021 claim the money. Eligible taxpayers can use this important tax document to get the Recovery Rebate Credit which will allow them to get the money they’re owed.

Child Tax Credit Letter

President Biden’s American Rescue Plan changed the child tax credit this year. It increased the amount given for each child. At the same time, it allowed more of the available money to go to taxpayers. Additionally, the government sent half of the money to parents in the form of monthly payments. Later, they sent out a tax document labeled Form 6419.

This tax document shows how much the IRS believes that it sent to each household. Additionally, it will let parents know how much they can still expect from the child tax credit.

Form 2441: An Important Tax Document for Caregivers, Parents

Parents and caregivers of qualifying children or disabled adults are eligible to receive the Child and Dependent Care Credit. This credit will reimburse caregivers for up to half of the money they spent on qualifying expenses. For instance, things like childcare, after-school programs, summer camps, and other care-related expenses. However, in order to claim this credit on their tax return, taxpayers need the proper document.

Taxpayers can use Form 2441 to claim the Child and Dependent Care Credit. They’ll need to fill out this form along with the rest of their tax documents. Doing this will allow families to get a little extra on their tax returns this spring.