How to Avoid a Delay in Your Tax Refund in…
Unfortunately, this year’s tax season may result in significant delays in tax refunds. Thankfully, we’re here to provide you with some advice on how to avoid this in 2022.
Returns from the previous year are still being processed by the IRS. They’re now dealing with 6 million unprocessed tax returns, according to their most recent report.
Due to COVID-19 pandemic-related disruptions, this is expected to be an unpleasant year for taxpayers waiting for their cut. This included payments for the enhanced child tax credit in 2021, as well as the impending $1,400 stimulus checks. Furthermore, the IRS has been underfunded for many years.
Surprisingly, however! After spitting all of that anguish, we’ll now give you some advice on how to reduce your chances of experiencing substantial tax refund delays this year.
Step 1: Save all IRS correspondence.
The IRS will send out two essential letters to many Americans. The letter “6419” refers to child tax credits. The letter includes information on the number of children who are eligible for tax credits as well as the total amount of tax credit payments received in 2021.
For the third round of stimulus checks, they should keep an eye out for the 6475 letters.
Step 2: Make an electronic filing.
You won’t have to worry about your tax return getting misplaced in the mail if you file electronically. It happens, as you may be aware. Additionally, the IRS claims that taxpayers who file their taxes electronically are more likely to receive their returns sooner.
Last year, roughly 10 million taxpayers filed paper returns, according to the Taxpayer Advocate Service. This accounts for around 7% of the total. We’re hoping to get that 7% on the electronic-filers team this year.
More on How to Avoid Delays in Tax Refunds
Step 3: Double-check your tax return for accuracy.
Whether or not your tax return is correct could decide whether or not you face delays this year. Americans should receive their W-2 forms from their employers in the near future. This displays tax information as well as the employee’s earnings. This is a crucial document that must be completed in order to properly file a tax return.
If you made a mistake with the Recovery Rebate Credit in 2021, or just missed out on information, there’s a significant possibility you’ll face a delay.
Step 4: Make a direct deposit.
After your tax return has been processed, direct deposit is the quickest way to get it. In addition, each paper return costs the filer more than $1. It just costs a penny for each direct deposit.
Step 5: Hire a tax advisor.
If you’ve had difficulties completing your taxes in the past, you’ll probably benefit from hiring a professional to complete the task correctly.
Once you have all of the necessary tax information, you can delegate the remainder to a professional. Using a professional can also alleviate any concerns you may have about filing something wrong. Making mistakes will potentially cause your tax return to be delayed.