The IRS has a few reminders for taxpayers this year. They are urging people to take the steps to make sure they are ready to file their 2022 tax returns. Child Tax Credit, Stimulus Checks (Economic Impact Payment), and charitable donations. Child tax credits and the Child and Dependent Care Credit have changed. The changes include ages, and amounts. Please talk with your CPA! If you didn’t receive an economic impact payment you may be able to get the recovery rebate credit.
Look out for letters 6419 and 6745 in your mail. In January, the IRS will send these letters to taxpayers. The letters will document the amount of child tax payments and the amount of the third stimulus check. It is important to keep all documentation and give it to your CPA. Additionally, the IRS encourages you to look at your charitable donations for 2021 to consider tax deductions that your contributions may qualify for. Finally, the IRS reminded taxpayers that their refunds are likely to be processed faster when using direct deposit and electronic filing.