Generally speaking, if you are under 65, single, and make $10,400 or more in a year, you must filing online tax return in 2022 but the very first thing you need to hire an certified tax preparer . Note to self-employed workers: You are expected to file if you make more than $400 in net self-employment income.
Important note: if your parents claimed you as a dependant on their tax return, you should contact them before proceeding.
If your parents may declare you like dependant on their tax filing online in 2022, it may reduce the tax advantages available on your return. Furthermore, it may make sense for your parents — rather than you — to take advantage of any relevant education-related tax incentives.
Here are some fundamentals to assist you in handling your first stab at filing a tax return effectively.
Do You Even have to Filing Tax Return
Online? (Yes, probably.)
The need to file a tax return is determined by your income, tax filing in 2022 status, age, and other criteria. It also depends on whether you may be claimed as a tax dependant by someone else.
Even if you don’t have to file taxes, you may want to do so anyway: You may be eligible for a tax break that may result in a refund. So, if any of the following conditions apply, you should seriously consider best tax return filing online in 2022:
- You had income tax deducted from your paychecks.
- You paid the expected tax or had last year’s refund applied to this year’s estimated tax.
- You are eligible for some tax credits.
When Can We Start Filing Tax Return Online for 2022?
The deadline for filing your 2021 taxes as of now is for April 15, 2022. Every year, the U.S. government designates April 15 as the deadline for paying taxes (unless April 15 falls on a weekend or a holiday, in which case the filing deadline is pushed to the following business day).
The IRS has yet to declare when it will begin taking 2021 tax returns, although, in prior years, the deadline has been around mid-February. Usually, the filing season starts in January.
7 Key points to consider when filing online tax return 2022
The IRS has now announced that the individual tax filing season would be extended. This year’s tax season brings a slew of changes, mainly due to the Covid-19 outbreak, ranging from a tax break on unemployment to people seeking to recover their unclaimed stimulus money, so this is a nice change.
However, if possible, begin working on your taxes as soon as possible. Preparing ahead of time can save you both time and money.
And, if you anticipate that your taxes may be more complicated than usual due to unemployment benefits, working several jobs, or getting government assistance, to mention a few instances, it’s vital to plan ahead of time to submit your taxes (and not least because you can avoid late filing penalties).
Tax Filing Online in 2022: 7 Points to be considered for the Tax Return
- Organize Your Online Tax Filing and Financial Records
Take your time to organize your tax documents and financial records when you do online tax filing in 2022, which will make the actual filing procedure faster and smoother. Use your previous year’s tax return as a starting point to establish your previous income, deductions, and credits recorded.
You can obtain a copy of your prior-year tax return by requesting one through the IRS website or signing into the tax software provider you used last year. If you dealt with a CPA or another tax expert, you were most likely provided a copy of your return when you filed. Obtaining the previous year’s tax return ensures that you have the necessary documentation to prepare your tax return.
Read more about How to Hire a Best CPA for Taxes?
Everyone’s tax situation is unique, but here is a list of common tax forms and paperwork you should have before submitting your tax filing online in 2022:
|Who||Tax Forms and Documents|
|Employees||Wage and Tax Statement (W2)|
|Recipients of the Economic Impact Payments (aka stimulus payments)||First Stimulus Payment (Notice 1444), Second Stimulus Payment (Notice 1444-B)|
|Self-employed and freelancers||Income for Non-Employee Compensation (1099- NEC), Payment Card, and Third Party Network Transactions (1099-K)|
|College students and graduates||Tuition Statement (1098-T), Student Loan Interest Statement (1098-E)|
|Unemployed people||Certain Government Payments (1099-G)|
|Retirees||Social Security Benefit Statement (SSA-1099), Distributions From Pensions, Annuities, Retirement, etc. (1099-R)|
|Homeowners||Mortgage Interest Statement, Real Estate Taxes|
|Investors||Dividend Income (1099-DIV), Sale of Property (1099-S), Partnership or S-Corporation Income (Schedule K-1), Rental Income (1099-MISC)|
|Charitable donors||Charitable Statements|
- How do I Set Up an IRS Account Online?
Setting up an online tax account with the IRS is a terrific method to get your tax records without contacting the agency by phone or mail. This will allow you to connect to an account, check payment balances, set up payment plans, and examine prior-year tax returns and reported tax forms.
This IRS feature came in handy at the start of the Covid-19 pandemic outbreak. IN MARCH, the IRS informed taxpayers that its walk-in services had been discontinued, and their centralized, toll-free hotline had been blocked until further notice.
- Check on Advance Child Tax Credit Payments
Families who got advance payments will need to compare the amount of the Child Tax Credit that they can lawfully claim on their 2021 tax filing online with the amount of the Child Tax Credit that they received in advance in 2021.
Taxpayers who received less than the maximum allowable amount will be able to claim a credit for the remaining amount of Child Tax Credit on their online tax filing in 2022. When filing, taxpayers who received more than the amount they are eligible for may be required to reimburse some or all of the extra payment.
The IRS will send Letter 6419 in January 2022 with the total amount of advance Child Tax Credit payments taxpayers received in 2021. People should save this letter and any other IRS correspondence about advance Child Tax Credit payments with their tax records.
Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum amount by claiming the Child Tax Credit when tax filing online in 2022 federal income tax return next year. This includes families who don’t usually need to file a return.
- Do I Really Need a CPA to do My Taxes?
You must decide whether to hire a certified public accountant (CPA) or do it yourself. As a CPA and former IRS agent, it is advocated that you use online tax software to file your taxes in certain instances. However, there are some tax situations in which I recommend working with a tax specialist.
If you are a freelancer, running a small business, or are an investment, you should consider hiring a CPA. Establishing a connection with a CPA can assist you in navigating potential tax deductions, developing tax strategies for the future, and being present if the IRS ever comes knocking to audit your taxes.
On the other hand, if your tax filing online is relatively straightforward, such as a basic wage and income statement (W2) and a few deductions, you might consider completing it yourself. This is also a lot less expensive alternative in general.
Keep in mind that if you anticipate needing the assistance of a CPA or tax professional, now is the time to develop that relationship. When Tax Day approaches, CPAs frequently stop accepting new customers for the season.
- Remember Your State Taxes
In addition to completing your federal tax return filing with the IRS, you must also file your state tax return at the same time. According to some studies, tax regulations differ from state to state, which means they may provide benefits not available on your federal return. Some states, such as Florida, have no state income tax. Some tax benefits may be associated with a vehicle or homeownership, while others may be related to specific jobs.
- ID Theft Still a Big Risk
Tax season is a prime time for identity thieves. Protect your personal and financial information with extreme caution. Never send your tax return information to a tax preparer electronically unless it is encrypted or is entered through a secure channel. Shred draught copies of your tax return. Be aware of phishing schemes, which may take the shape of a phone call, email, text, or post on your social media account from a company you’d ordinarily trust. The IRS’s first contact with a taxpayer is usually via postal letter, so if you get a call from someone claiming to be the IRS out of the blue, it’s a scam — hang up and don’t reveal any personal information.
- Private Debt Collectors on the Job
The IRS now uses private debt collectors for certain late federal tax obligations, a relatively new trend. If your tax debt is turned over to debt collection companies, you will receive a letter from the IRS, followed by a letter from the debt collection agency stating that it is responsible for collecting the bill. Collection agencies can represent themselves as IRS contractors and must abide by the Fair Debt Collection Practices Act.
Any cheques should be payable to the United States Treasury, not a private debt collection firm. If you have an unpaid federal tax bill, contact the IRS to establish an online payment agreement, submit an offer in compromise, or request a temporary stay in the collection. If you’re in this scenario, it’s generally a good idea to consult a tax professional familiar with these schemes.
The Final Verdict
To sum up, you must either e-file using free or paid software or mail in your 1040 together with the other needed papers. Choose a filing status depending on your family situation, then total the amount of the deductions and credits you’re qualified for to decide whether you should itemize or claim the standard deduction.
We hope the above-handpicked points are helpful to you. If you are a layman and need help, you should count on Simple Fun Tax to file your tax returns. Our tax specialists have assisted hundreds of individuals in various professions and put their experience to work, understand how to deal with these issues, and take all the burden away from you. When you can’t afford to be wrong, let the tax professionals on Simplefuntax help you get it right.