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Preparing for the New Tax Season

This tax filing season can be confusing. Therefore, make sure you prepare your documents in advance. This can help you receive refunds on time and can save you a lot of time. In addition, if you qualified for the Child Tax Credit and/or the last Stimulus Check and did not receive any deposit or it was less, there is very important information that you should know and apply. 

Below, we’ll answer some of the most common questions you need to ask and know if you didn’t receive these benefits when you filed taxes. We will answer some of the questions below. 

1. How was the distribution of the Child Tax Credit?

2. What should I prepare when I file my 2021 taxes?

3. What are the letters that the IRS is going to send and what are they for?

4. Do I need to file these letters when I file my 2021 taxes?

5. What do I do if I didn’t receive the Child Tax Credit and I did qualify?

6. What do I do if I didn’t receive the last stimulus check and I did qualify?

Distribution of the Child Credit

The American Rescue Plan Act allowed the IRS to increase the child tax credit. Families who qualified must have received a sum of $3,000 or more for each eligible child who had to be between the ages of 6 to 17. If the child was under 6 years old, then the amount for the year would be $3,600. The deposits of the advances began in July 2021 until December 15 of the same year, being sent half of the credit. But BEWARE! If you haven’t received the 2021 or received less, you may still be able to claim it when you file your 2021 taxes. You should let your tax preparer know this information so that they can add a claim of what you are entitled to and give you the full amount or what you lack to receive from the credit.

A Look Back – 2020

To prepare for the tax filing season, experts recommend starting by reviewing your 2020 taxes to give you an idea of what you filed last year. If you are self-employed, a freelancer, or if you have a secondary job, you usually need to receive and file any W-2 or 1099 form of the year that passed. If you have a period of unemployment, you should look for form 1099-G that the unemployment department will send you.

You’ll also have to pay the taxes you received for unemployment benefits, as there will be no tax breaks this year. If you received the Child Tax Credit payment, you will need to have IRS letter 6419. If you received stimulus checks in 2021, you’ll need to have letter 6475, which you’ll receive by the end of January.

Speak with Your Accountant

It is important to speak to your accountant or bookkeeper before filing your taxes. If you don’t have one, then find a professional who offers services for tax preparation in Denver. It is best to have all your documents ready before you do so.