Taxes: How do I get my child tax credit? Are COVID costs covered? Where’s my refund?
How do I get my child tax credit? Can I get COVID-19 expenses covered? When are taxes due? When will I get my refund?
These are all questions you might have been asking since the tax season kicked off Jan. 24.
Here’s everything you need to know about filing your 2021 taxes, according to Eric Pierre, a Texas-based certified public accountant and owner of Pierre Accounting.
When should I expect my tax refund in 2022?
Refunds are going to take longer than expected this year. The soonest you can expect your refund is around Feb. 14 or 15.
“It’s a mess right now,” Pierre said, because of an immense tax return backlog. “It’s very discouraging that taxpayers are being punished for the IRS not getting its act together.”
The agency’s top watchdog said last year was the “most challenging year taxpayers and tax professionals have ever experienced.”
“Normally, (the Internal Revenue Service) would have 1 million unprocessed returns from the previous tax season. Well, to start this tax season, they have 6 million unprocessed returns,” Pierre explained. “They’re behind from last year — six times as many returns. So that’s going to cause a delay in getting your refund this year.”
Normally, it would take two weeks to get your refund check, but this year it may take three weeks or more.
How can I avoid lengthy refund delays?
The deadline to file your taxes is Monday, April 18. But Pierre encourages filing as soon as possible to avoid a refund delay.
Also, set up direct deposit.
“Make sure you take an extra few minutes to review what’s on that form to make sure it is accurate,” Pierre said.
Ensuring your return is accurate will help you avoid snags in the process that’ll cause delays. Double-check all the numbers.
“There are opportunities to increase your refund. But some people may be getting hit with some high tax bills because they changed their withholdings,” he said.
You can double-check your withholding with the IRS Tax Withholding Estimator. In more complex situations, Pierre recommends working with a tax professional, like a CPA or enrolled agent.
What should I do to get my child tax credit?
If you’re a parent who received child tax credit payments, you’ll get a letter from the IRS outlining the total amount you received. You’ll need to save that letter and include it when submitting your taxes in order to get your full refund, including the remainder of your credit, Star-Telegram reporter Isaac Windes previously reported.
When you file your taxes, compare the advance payments you received in 2021 with the amount of the child tax credit you can properly claim on your tax return, according to the IRS.
You may also want to get your online IRS transcript to verify what’s in the letter, Pierre says. The IRS has admitted to issuing incorrect child tax credit letters.
If you report the child tax credit incorrectly, your refund will be delayed.
Can I write off COVID expenses?
Yes, personal protective equipment, such as masks, hand sanitizer, at-home tests and sanitizing wipes, is tax deductible, according to the IRS. But that’s only if your total medical expenses exceed 7.5% of your adjusted gross income.
Also, teachers can deduct up to $250 on COVID-19 protective items per year.
Are unemployment benefits taxable?
As part of the American Rescue Plan, unemployed Americans temporarily got a tax break last year. Up to $10,200 of unemployment benefits went tax-free.
That tax break has not been extended to this tax season. Because unemployment benefits are again fully taxable, any unemployment benefits you collected have to be included in your taxable income when you file this year, Pierre said.
This story was originally published February 4, 2022 at 5:00 AM.
