Tax season is here, and it’s early this year.
You can start filing electronically on Monday, but will the returns be bigger or smaller this year?
Everyone likely wants money back when they file their taxes, and this year, you can file electronically on Jan. 24.
Some may be skeptical after delays from previous years due to COVID-19.
Mark Steber, a chief tax information officer, said the IRS may have some staffing issues, but they have adjusted to tax processing during a pandemic.
“The IRS is still challenged by the pandemic, as many companies are. So, as they have been messaging ‘file early and electronically,’ because as we may experience this year, last year, there were upward of 30 million returns,” said Steber.
Some people are hesitant to file electronically, but Steber said it’s an easy process that could help you avoid processing delays.
“You run the risk of being stuck on a truck at the IRS, or having some other issues come up,” Steber said.
Another reason to start early is if you have a dependent or child tax credit. The tax could be more complicated this year.
The news Steber predicts is “large or larger than last year” refunds happening for moderate-income families.
This year, parents should keep a special eye out for an IRS document known as Letter 6419.
The letter pertains to 2021′s Advance Child Tex Credit, which was paid out from July through December. Families received up to $300 for each child ages 5 and older, and up to $250 for children between 6 and 17.
Letter 6419 will help parents accurately report the amount of money they received upfront in 2021. If parents did not receive one or more child tax credit payments, they would call the IRS.