Tax Season 2022 Starts Now: Here’s What Taxpayers Need to Know

It's that time of year again—are you ready to file your taxes?

Tax season officially began on Monday, January 24, 2022, which means the light is green for you to go ahead and file. According to the IRS, though, this year will be challenging and has certain distinctions you need to be aware of. So, before you sit down and get cozy with piles of tax paperwork to file, let’s break down key changes in tax season 2022 and understand your rights as a taxpayer.

Here are six common questions about this year’s tax season:

1. Will COVID-19 cause tax delays?

COVID-19 and funding issues will make this tax season particularly challenging, the IRS warned. They call for taxpayers to file as soon as possible and avoid sending in a paper tax return to prevent processing delays. In fact, to get your refund back as fast as possible, they recommend filing electronically and choosing to direct deposit. You can expect to receive your return within 21 days of filing using this option.

2. When should you expect to get your W-2?

If you’re a W-2 employee, expect to receive your tax documents in the next week or so. The deadline for mailing out W-2s is January 31.

3. Should you claim a Recovery Rebate Credit?

The Recovery Rebate Credits allows you to lower your taxes or receive a credit for your Economic Impact Payment if you didn’t receive it last year. If you didn’t qualify for a third Economic Impact Payment, or received less than the full amount, you may be eligible to claim the Recovery Rebate Credit. You'll be getting a Letter 6475 from the IRS with the total amount of Economic Impact Payment received.

4. Will unemployment benefits come with a tax break this year?

Unemployment benefits will not come with a tax break this year. Last year, the temporary tax break only applied for individuals with modified adjusted gross incomes of less than $150,000 in 2020 who received unemployment benefits.

5. Should you watch for letters about advance Child Tax Credit payments?

If your family received advance Child Tax Credit payments, make sure you watch for a letter from the IRS (Letter 6419) specifying important information that can help ensure your return is correct. The IRS started mailing these letters in December 2021 and continues to send them out in January 2022. You can also review your records on the IRS website.

6. When is the deadline for filing?

Due to the Emancipation holiday in the District of Columbia, this year’s deadline is three days later than the usual one: It will be Monday, April 18 instead of April 15. By law, Washington, D.C., holidays impact tax deadlines the same way federal holidays do.The IRS has also extended the deadline until May 16 for various individuals and businesses affected by the 2021 Colorado wildfires and victims of the December tornadoes in Illinois, Kentucky, and Tennessee.

Talk to a lawyer with your tax questions.

Taxes can be tedious and confusing in the first place, especially if you are a business owner or have an unusual financial situation. If you have questions or concerns regarding your taxes, talk to a LegalShield lawyer and close the books on tax season 2022 with peace of mind.