Monday, April 18 is the deadline to submit your tax return. Filing your taxes in the post-COVID era can be complicated and confusing. The laws are constantly changing. For example, the standard deduction increased to $ 12,550 for single files and $ 25,100 for married couples applying jointly, and income tax amounts are increased to account for inflation.
“There are still about 24 million tax returns, mine included, that have not yet been processed by the IRS.” Joel Garris, JD, President & CEO, Nelson Financial Planning told Ivanhoe.
The first thing you can expect in this tax season is not to expect your refund at some point, and due to lack of IRS staff, do not even try to call and complain.
“According to the latest statistics, there were 32 million telephone calls that they have the capacity to answer in a given year. Last year, they received 250 million phone calls. So about 90 percent of the phone calls to the IRS are simply missed. “Garris explained.
Did you get or did not get your stimulus check?
“Many people may not have seen it in their mail or thought it was unsolicited mail. And then they have to go through the process of claiming that stimulus check if they did not get it on their tax return.” Pronounced Garris.
The child tax deduction also creates confusion. Many people got only half last year and are now eligible for the other half.
“So the other half could be as much as $ 1,500 to $ 1,800 per child,” Garris explained.
Another misconception, no extra charitable donations can be written off. A standard deduction is $ 300 for singles and $ 600 if you apply jointly, but there is some leeway.
“There is an option to write off donations to charity that are in addition to your standard deduction. And that can be an additional $ 600 deduction for a married couple.” Garris told Ivanhoe.
But these donations must be made with either cash or check.
This is the first year in three years where we have not had extra time as taxpayers to file the tax return. You have until Monday, April 18 to apply, or you can apply for an extension. Submitting an extension form online gives you until October 15 to submit a return. To get the extension, you must estimate your tax liability and must pay any amount due before April 18th. But be aware that if you underestimate how much you owe, you could be hit by some pretty significant penalties.
Contributor (s) to this news report include: Marsha Lewis, producer; Bob Walko Editor. To receive a free weekly email about Smart Living from Ivanhoe, sign up for: http://www.ivanhoe.com/ftk
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