The 2022 tax season started officially on January 24. The holiday on Patriots’ Day will give citizens a few days extra, as they can file before the deadline of April 19. Traditionally, the last date to submit taxes is April 15. With stimulus checks still due to millions of families, here are steps you should take to ensure that all your papers are ready well before the deadline.
Getting off the mark early is the best way to ensure that you are not bogged down by last-minute hassles. The day you begin working on your tax returns is today. Submitting your taxes early will also help the IRS process them faster and if you have any stimulus check coming your way, it will be credited faster to your account.
Get all your papers together. While there is the wage report or W-2 form from your employer, you also have to get the 1099 forms reporting all types of income earned under the non-employment category. This includes freelance work or interest paid to savings accounts.
Get Your Stimulus Check Related Documents In Order Before Filing Returns
Homeowners must also ensure they get the 1098 form showing mortgage loans interest paid. Citizens must also reveal documents related to health insurance that should be either through their employer or the state.
Documents sent by the IRS who received income from stimulus checks or Child Tax Credit stimulus checks. This amount can also be worked out on the website of IRS.
Low or moderate-earning taxpayers can get a break if they are unemployed individuals who survived only on the stimulus check-in 2021, though they might have taxable earnings in 2019 and 2020.
Decide whether you will go for the itemized system or standard deduction, with most people opting for the latter. For individuals, the standard deduction comes to $12,500, while for couples filing jointly, it is more than $25,000.
If the itemized deduction works out to less, go for the standard deduction.
Many people will get a stimulus check in the form of a refund, so plan how you intend to spend it. If you are unsure, seek professional help.
