Late tax returns not only create additional stress for the taxpayer, but they also cost them a lot of money. If every one of us filed our taxes on time we could save up to $100 billion in revenue each year.

The “irs” is the U.S. Internal Revenue Service and filing your taxes early is a good idea because you will get more time to make changes or corrections before the deadline.

 

The year 2022 will be here before we know it. The earliest you can submit your taxes is January 24, and the deadline is April 18 this year (Tax Day). When tax season arrives, you may want to file your tax return as soon as possible.

Parents always benefit from filing early, but there are a few reasons why they should submit their 2021 taxes as soon as possible this year.

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Parents should submit their taxes as soon as possible for four reasons.

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Because to coronavirus-related legislation like the American Rescue Plan Act of 2021, there are a number of modifications to this year’s taxes. Some of the adjustments will benefit taxpayers by allowing them to file their taxes earlier in the season.

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1. The advance child tax credit was beneficial to you.

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The child tax credit payments you made in advance were only half of your entire child tax credit for 2021. If you obtain a refund this year, the other half of the credit will be included in your tax refund when you submit your income tax return.

Only until 2021 has the child tax credit been increased (thanks to the American Rescue Plan Act of 2021). Unless Congress adopts new legislation, advance payments will stop in 2022. Instead of making further advance payments, parents may submit their tax returns earlier so that they can get the remainder of their child tax credit.

Here are some other tax credits and deductions you can claim in 2022.

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2. You did not get the entire stimulus payment.

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In March 2021, the third round of COVID-19 stimulus inspections began. If you didn’t get your check or received less than you should have because you had a kid in 2021, you may claim the recovery rebate credit on your tax return to collect your full payment.

You may also claim this credit if you got less than you should have since the Treasury calculated your credit amount using an outdated income figure (from 2020 or 2019), but your income in 2021 was lower and would have qualified you for a larger payout. You can’t recall how much the third check was? Examine the letter you received from the IRS earlier this year (Notice 1444-C) or wait for Letter 6475, which will arrive in early 2022.

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3. You are anticipating a refund.

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If you anticipate a return this year, filing sooner will result in a faster refund. One exception is that, regardless of how early you file, if you claim the earned income tax credit or extra child tax credit for 2021, the IRS must wait until at least mid-February to deliver your refund.

The IRS advises e-filing and opting for direct deposit to get your return as quickly as possible. Try our guide to the top tax filing services for assistance picking the finest online tax software.

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4. Filing early will assist you avoid becoming a victim of identity theft.

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Criminals use a stolen Social Security number to submit a tax return and claim a refund early in the year, which is one sort of tax fraud and identity theft. The individual whose Social Security number has been stolen is unlikely to notice until they attempt to submit a tax return and it is refused. To be safe, submit your taxes as early as feasible in the year. Filing early also protects everyone who is included on your return, such as your spouse and dependents, since a criminal won’t be able to file a bogus return for them.

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There are four reasons why you should postpone filing your taxes.

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Many tax filers would profit by submitting their returns sooner, while many others would gain from delaying their returns. Here are several scenarios when you may wish to postpone submitting your taxes until later in the year.

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1. You will be required to pay a tax bill.

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If you owe a tax bill for the year 2021, you must pay it by April 18, 2022, in order to avoid penalties and interest. That means you may put off paying your account as long as possible by deferring payment until April 18. The IRS provides payment options if you need assistance paying your tax obligation.

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2. You want to contribute in 2021 as well.

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Contributions to some accounts, such as regular IRAs, may still be made until Tax Day in 2021. If you expect to make additional contributions for the 2021 tax year, and those contributions may have an impact on your tax return, such as the IRA deduction, you may wish to submit your taxes as soon to April 15 as feasible. If you’re married, keep in mind that you may contribute to your spouse’s IRA as well.

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3. You’re waiting for your tax paperwork to arrive.

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If you don’t have all of the appropriate tax documentation, filing your taxes may be difficult or impossible. So, if you’re waiting for a tax document, make every effort to get it before attempting to file your taxes. Are you looking for a prior year’s tax document? You may wish to ask the IRS for a tax transcript.

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4. You intend to file for a tax extension.

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If you are unable or unwilling to submit your tax return by April 18, you may seek a six-month delay. If you submit Form 7004 with the IRS before Tax Day, you will be granted an automatic extension. Just make sure you pay any outstanding tax bills before the deadline. You have additional time to submit your papers to the IRS with an extension, but you must still pay your tax debt (or at least your anticipated tax bill) by April 18.

In 2021, did you experience a fire, flood, tornado, or other natural disaster? You may already be facing extended filing deadlines. Learn more about the IRS’s tax aid for natural catastrophe victims.

Related:

This article originally appeared on Policygenius.com and was syndicated by MediaFeed.org.

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AlertMe

The “can a 17 year old file taxes” is a question that parents might be wondering. The answer is yes, but it is better to file early.

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  • can i file my taxes as a dependent
  • what is the penalty for filing taxes late if you are owed a refund
  • can i submit my taxes now
  • when did tax season start 2021
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