Tax season tips: 3 things to know before you file

PITTSBURGH — It’s that time of year. We’ve all been getting our W-2s and 1099s to file our taxes, and this year, more than ever, it’s a good idea not to procrastinate.

Channel 11′s Angie Moreschi explains why and has three important things you need to know before you file.

Child Tax Credit confusion

If you got COVID-19 relief money, the confusion continues over how much in taxes you have to pay. That means getting started early is more important than ever to sort out any issues.

First, if you have kids, this is the time to settle up on those child tax credits. In 2021, millions of eligible families got six advance payments of up to $300 for the expanded child tax credit. That added up to as much as $1800 per child under age 6 or $1500 per child ages 6 to 17.

To claim the second half of the expanded child tax credit, you have to enter specific information on your 2022 taxes. You should have received something called Letter 6419 from the IRS that details the total amount of advance payments you received.

If you opted out of the advance payments, missed getting any payments, or got too much, it’s time to reconcile that on your 2022 taxes. Also, if you received more than you can properly claim, the IRS says you have to pay that back.

Financial Expert Shana Bielich with Coghill Financial Investments says it’s important to understand that the government based the amount you received on your 2020 tax income. So any changes could make a difference in how much you’re supposed to get.

“The thing that consumers need to be aware of is what if their income has drastically changed year over year from 2020 to 2021? Or what if you had a baby or adopted a child in 2021 — you can claim those credits in on your 2021 tax return, so you just need to be aware of that,” Bielich said.

Extra stimulus payment

There was a third stimulus check worth up to $1,400 that went out to millions of Americans who qualified in 2021. That qualifying amount was up to $75,000 for single filers and up to $150,000 for married filers. Dependents were also eligible for a $1,400 payment.

Bielich says the most important thing here is to make sure you got it if you qualify.

“You can still claim that credit as you’re filing your return. It’s called the Recovery Rebate Credit,” she explained.

Another thing to note here: If your income changed from 2020 to 2021 and you ended up making too much to actually qualify for the third stimulus check but still got it, you don’t have to pay that back — unlike the child tax credit.

Delays are likely

Finally, the last thing you really need to know is that delays are likely for many, because the backlog from the pandemic still isn’t sorted out.

“It’s been a real challenge,” Bielich said. “The IRS has said that they expect their refunds to be processed within 21 days, but we have people that are waiting over 270 days for a return.”

There are three key things you can do to try to avoid getting stuck in the backlog.

• Be extra careful not to make any mistakes; double- and triple-check your return to make sure there are no errors.
• File electronically — paper just flat-out takes longer to process.
• Use direct deposit to speed up getting your refund.

Deadline April 18

This year, you will have three extra days to file because April 15 is on a Friday, which is the Emancipation Day holiday in Washington, D.C. The IRS extended the deadline to Monday, April 18, but you’d be wise not to wait that long.

CLICK HERE for five things the IRS says to remember before you file.

Billions available for families if they file taxes for child tax credit benefits