What To Know As 2022 Tax-filing Season Begins
It is tax season, and those living in the U.S. can start filing individual income tax returns beginning Monday, Jan. 24. However, the starting date comes amid staff shortages and backlogs due to the COVID-19 pandemic that have plagued the Internal Revenue Service (IRS).
“As of December 31, 2021, we had 6 million unprocessed individual returns. It is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days,” the IRS announced.
But the agency has some tips for tax filers to make the process seamless and quick amid challenges. The IRS encourages people to use the e-filing system and direct deposits to avoid delays once they have an accurate return.
There are a variety of options for filing taxes online, whether it involves DIY or hiring a tax professional. There are also free filing programs run by the IRS for people to use. The agency cautions tax filers to inquire about credentials and fees before hiring a tax preparer.
Collecting all documents before preparing tax returns is something that the IRS recommends to avoid any errors or delays that would affect tax returns. Those who received a child tax credit and/or economic impact payments should use related documents when filing.
Since the IRS’ phone lines are typically backed up with calls about questions, concerns or problems, the revenue agency suggests using online resources that are available 24 hours a day. The IRS has an app, YouTube videos, social media accounts and websites available to answer questions or address concerns.
There is also a tip the IRS provides for those filing their taxes this year, and that is to include adjusted gross income from last year on filings for this year. Many taxpayers saw midyear revisions as a result of the American Rescue Plan's passage.
If there is a delay on 2020 tax returns when filing online, “make sure to enter $0 (zero dollars) for last year's AGI on the 2021 tax return. For those who used a Non-Filer tool in 2021 to register for an advance child tax credit or third economic impact payment in 2021, they should enter $1 as their prior year AGI. Everyone else should enter their prior year's AGI from last year's return," the IRS advises.
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