Unfortunately, this year’s tax season could mostly mean tax refund delays. Thankfully, we’re here to provide you all with tips on how to avoid that for 2022.
The IRS continues to deal with returns from last year. According to their latest update, they’re currently dealing with 6 million unprocessed tax returns.
This is likely to be a frustrating year for taxpayers waiting for their cut thanks to COVID-19 pandemic-related disruptions. This also included expanded child tax credit payments in 2021 and upcoming $1,400 stimulus checks. Also, the IRS has been underfunded for years now.
But, surprise! After spouting all of that misery, we will now provide you guys with steps to take to lower the likelihood of facing large tax refund delays this year.
Step 1: Hold onto letters from the IRS
Many Americans will receive two important letters from the IRS. This includes the letter “6419″ for child tax credits. The letter contains information about the number of eligible children and the total amount of tax credit payments received in 2021.
They should also keep an eye out for the 6475 letter for the third round of stimulus checks.
Step 2: File electronically
By filing electronically, you do not have to worry about tax your return getting lost in the mail. It happens, you know. Also, the IRS claimed that those who file electronically are more likely to get their tax refund faster.
According to data from the Taxpayer Advocate Service, nearly 10 million taxpayers filed paper returns last year. This equals roughly 7% of the full total. Hopefully, we can get that 7% on the electronic-filers team this year.
More On Avoiding Tax Refund Delays
Step 3: Make sure your tax return is accurate
Whether or not your return is accurate could determine whether you’ll be dealing with delays this year. Americans can soon expect their W-2 forms from their employer. This shows information about taxes and the employee’s income. This is an important document that’s needed if a person wishes to correctly file for a tax return.
In 2021, there’s a good chance you may have experienced a delay if you made a mistake related to the Recovery Rebate Credit, or just left out information.
Step 4: Use direct deposit
Direct deposit is the quickest way to receive your tax refund after it’s been processed. Also, it costs the filer more than $1 for every paper refund issued. For each direct deposit, it only costs a dime.
Step 5: Use a tax professional
If you’ve experienced trouble with filing your taxes in the past, you’d likely benefit from hiring a professional to properly get the job done.
Once you have all the tax information needed, you can let the professional do the rest. Using a professional can also ease any worries you might have about filing incorrectly. Making errors will also delay your tax return.