The Tax Day 22 countdown has started. With less than 2 months to go for the deadline on April 18, it is time you get started on the process. There are significant changes from Tax Year 21, applicable to residents. If you are in for a CTC stimulus check, there are some additional details to be considered.
Tax filers should be aware that you could be eligible for stimulus checks, or what is officially known as the Economic Impact Payment. 175M million stimulus checks were handed out starting the second week of March.
Citizens Who Got Their Stimulus Check Based On The 2020 Returns Could Get Additional Payment
The stimulus check amount was calculated on the income tax returns of 2020-21. There are chances that you could get an additional stimulus check once you file the 2022 return, especially if you report a fall in income in 2021.
Many families are not aware that they also meet the requirements for the enhanced Child Tax Credit stimulus check. The credit amount was increased by Joe Biden in March 2021. So you need to be sure that the additional amount has been factored in when you go for your 2022 income tax returns.
Further, there have been certain changes in charitable contributions. Individuals who haven’t itemized their deductions are eligible to claim one for $300. Joint filers should go in for a deduction of $600. These should be in cash to be claimed.
There have also been changes in unemployment compensation. You need to submit returns on the total amount of the unemployment check. The initial 10,200 of the compensation was non-taxable in 2020 but is now deemed taxable.
Citizens working remotely might have to pay their taxes in multiple states. This is relevant if the company is located in one state, and you have worked remotely from another.
People over 72 years also should make the minimum distributions. It is the minimum amount to be withdrawn from retirement accounts under certain criteria.
