Preparing for the 2022 tax season
RENO, Nev. (KOLO) - ‘I’ve been thinking about it. I am excited about it. It’s that time of year again,” says tax preparer Teresa Grant-Decal.
Grant-Decal’s excitement is understandable as it means a steady workload until October 2022.
For the past couple of years there have been some temporary rule changes because of COVID. 2021 she says we should be getting back to normal. A steadfast deadline on April 15 is anticipated.
“Gonna start on time and end on time,” says Grant-Decal.
This year the government offered an Advanced Child Tax Credit to families. This essentially was an advanced payment to taxpayers who claimed an eligible child or children in 2021. It is not taxable income. However, Grant-Decal says for those who end up owing taxes to the IRS in 2021 a forestalled child tax credit could have helped pay the bill.
“That $2,000 or $3,000 or $4,000 dollars, depending upon how many kids you have, could really help and be beneficial,” says Grant-Decal. Reduce that child tax credit, reduce that tax liability, and then it is refundable, the difference is refundable. If you got that credit in advance you don’t have anything to work against,” she says.
Those who have health insurance through the state’s health insurance exchange called “Health Link” and received subsidies to pay the premium, need to double check when filing taxes for 2021.
The subsidies are not taxable income. However, underestimated income to qualify for the subsidies, or a job change where the pay is greater than initially reported may mean the government is owed the full or a portion of the subsidy. Those who are in this scenario need to notify their broker or “Health Link” at the time of those changes.
Many people chose to go into their own business in 2021 instead of working for someone else. Grant-Decal says any purchases or payments made on behalf of that businesses can be deducted. But there must have proof.
“You don’t necessarily have to hire a bookkeeper to do that for you if you are starting out and you are small,” she says. “But you know if you get audited you want all those records to be intact.”
Other issues to consider now before filing taxes--name changes and marital status, and even a new social security card number.
Tax forms will be heading out at the end of January 2022.
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