Get Ready for Taxes: Take these steps to make this filing season easier!

A little housekeeping...

 

Get ready for taxes: take these steps to make this filing season easier

A little housekeeping...

Notify the IRS if you have a change of address and notify the Social Security Administration of a legal name change.
Gather all your tax records and remember, most income is taxable:

  • Forms W-2, and or 1099-NEC from your employer(s)
  • Forms 1099-K, 1099-MISC or other income statements
  • Forms 1099-G for unemployment
  • Forms 1099 from banks including dividends, distributions
  • from pension, annuity, or retirement plan
  • Forms 1099-INT for interest received
  • Other documents and records of virtual currency income

Income documents help you determine your eligibility for deductions or credits.
If you took advance payments of the Child Tax Credit and Premium Tax Credit, have your 2021 information ready for
reconciliation.
If you received the third Economic Impact Payments, and think you qualify for additional amounts, you will need your
stimulus payments, and plus-up amounts to claim the 2021 Recovery Rebate Credit.
Important end of year documents to keep for your records:
  • Letter 6419, 2021 Total Advance Child Tax Credit Payments
  • Letter 6475 Your 2021 Economic Impact Payment
  • Form 1095-A Health Insurance Marketplace Statement

Making an Online Account on the IRS website is an effortless way to:
  • Access the advance Child Tax Credit portal to view payment dates and amounts
  • View the amounts of your Economic Impact Payments
  • Update notice preferences to paper or email
  • View your withholding amounts and adjust if applicable
  • Make estimated tax payments
  • Make sure your ITIN is not expired

Things to consider...
  • Adjusting your withholding by completing a new W-4 each year when personal or financial situations change.
  • Withholding more tax can save you a bill at the end of the year.
  • Making estimated tax payments if you received substantial self-employment income, investment income, or any
  • non-wage income.
  • Renewing your ITIN if it expired and if needed on a U.S. federal tax return

Have a Happy Tax Filing Season with Sanchez LLC

Here are some key items for taxpayers to know before they file next year.

Changes to the charitable contribution deduction

Taxpayers who don't itemize deductions may qualify to take a deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations.

Check on advance child tax credit payments

Families who received advance payments will need to compare the advance child tax credit payments that they received in 2021 with the amount of the child tax credit that they can properly claim on their 2021 tax return.

  • Taxpayers who received less than the amount for which they're eligible will claim a credit for the remaining amount of child tax credit on their 2021 tax return.
  • Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the child tax credit when they file a 2021 federal income tax return next year. This includes families who don't normally need to file a return.

In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov online account to securely access their child tax credit payment amounts.

Economic impact payments and claiming the recovery rebate credit

Individuals who didn't qualify for the third economic impact payment or did not receive the full amount may be eligible for the recovery rebate credit based on their 2021 tax information. They'll need to file a 2021 tax return, even if they don't usually file, to claim the credit.
Individuals will need the amount of their third economic impact payment and any plus-up payments received to calculate their correct 2021 recovery rebate credit amount when they file their tax return.
In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received. People should keep this and any other IRS letters about their stimulus payments with other tax records. Individuals can also create or log in to IRS.gov online account to securely access their economic impact payment amounts.

Keep Your Identity Safe

If you use an online application to do your taxes, you can now log in with your username, password and a third personal item like a phone number. Using all 3 will keep your identity and data safer.

Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security number, to file a tax return claiming a fraudulent refund.
If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must file a paper return.

Know the Signs of Identity Theft

You may not know you're a victim of identity theft until you're notified by the IRS of a possible issue with your return.
Be alert to possible tax-related identity theft if:

  • You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
  • You can't e-file your tax return because of a duplicate Social Security number.
  • You get a tax transcript in the mail that you did not request.
  • You get an IRS notice that an online account has been created in your name.
  • You get an IRS notice that your existing online account has been accessed or disabled when you took no action.
  • You get an IRS notice that you owe additional tax or refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.
  • IRS records indicate you received wages or other income from an employer you didn't work for.
  • You've been assigned an Employer Identification Number but you did not request an EIN.

Take Action if You Are a Victim

There are steps you can take if your Social Security number or other personal information is compromised.
Use tab to go to the next focusable element

If your Social Security number is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these actions:

  • Respond immediately to any IRS notice: Call the number provided.
  • If your e-filed return is rejected because of a duplicate filing under your Social Security number, or if the IRS instructs you to do so, complete IRS Form 14039, Identity Theft Affidavit PDF. Use a fillable form at IRS.gov, print, then attach the form to your return and mail your return according to instructions.
  • Visit IdentityTheft.gov for steps you should take right away to protect yourself and your financial accounts.
See Identity Theft Victim Assistance: How It Works for more information about how the IRS can help you.

If you previously contacted the IRS and did not have a resolution, contact us for specialized assistance at 800-908-4490. We have teams standing by to help you.

Fraudulent Returns

If you believe someone has filed a fraudulent return in your name, you can get a copy of the return. See Instructions for Requesting a Copy of Fraudulent Returns .

Dependents

If you e-file your tax return and get a message telling you that a dependent on your return has been claimed on another tax return or their own, or if you receive an IRS Notice CP87A , you'll need to find out why someone else claimed your dependent. Learn more at What to Do When Someone Fraudulently Claims Your Dependent.

The IRS will never:

  • Initiate contact with taxpayers by email, text or social media to request personal or financial information
  • Call taxpayers with threats of lawsuits or arrests
  • Call, email or text to request taxpayers' Identity Protection PINs

IRS Help

What You Need to Know

IRS.gov is the official IRS website where you can find answers to your questions and resolve tax issues online.
•Those who earn around $55,000 or less may qualify for free tax help at a VITA or TCE site.
•IRS Free File has free online options for taxpayers to prepare and e-file their tax returns.
•The IRS is looking for volunteers for the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs to provide free tax preparation services to their neighbors in 2019.
 

What You Need to Do

•Use the Let Us Help You page where you can get help answering most tax questions, get a copy of your tax record and make a payment among other services.
•You can also call (844) 545-5640 to make an appointment at one of our Taxpayer Assistance Centers if you need face-to-face help.
•The IRS Services Guide also links you to these and other IRS services.
•Go to the VITA or TCE page to learn more, then click on the VITA/TCE Locator tool beginning in mid-January to find a site near you that can help you prepare and e-file your return for free, if you qualify.
•Go to the IRS Tax Volunteer page to learn more and sign up to become a VITA or TCE tax volunteer.

IR-2018-225

WASHINGTON --The IRS reminds taxpayers to keep a copy of their past tax returns and supporting documents for at least three years. Certain key information from their prior year return may be required to file in 2019.
This is the fifth in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. The IRS has recently updated its Get Ready page with steps to take now for the 2019 tax filing season.
Keeping copies of prior year tax returns saves time. Often previous tax information is needed to file a current year tax return or to answer questions from the Internal Revenue Service. Taxpayers claiming certain securities or debt losses should keep their tax returns and documents for at least seven years.

Use a tax return to validate identity

Taxpayers using tax filing software for the first time may need their adjusted gross income (AGI) amount from their prior year's tax return to verify their identity. Learn more at Validating Your Electronically Filed Tax Return. Those who need a copy of their tax return should first check with their software provider or tax preparer. Taxpayers can also obtain a free tax transcript from the IRS, or for a fee, order a copy of their tax return.

Order a transcript

A tax transcript can be ordered from the IRS. It summarizes tax return information and includes AGI. Tax transcripts are free and available for the most current tax year after the IRS has processed the tax return. Tax transcripts are available for the past three tax years.

Plan ahead. Delivery times for online and phone orders typically take five to 10 days from the time the IRS receives the request. Taxpayers who order by mail should allow 30 days to receive transcripts and 75 days for tax returns.

There are three ways for taxpayers to order a transcript:

  • Online. Taxpayers can use Get Transcript Online on IRS.gov to view, print or download a copy of all transcript types. Those who use it must authenticate their identity and create an account using the Secure Access process. Please allow five to 10 calendar days for delivery.
  • By phone. Call 800-908-9946.
  • By mail. Taxpayers who are unable to register or prefer not to use Get Transcript Online may use Get Transcript by Mail. Taxpayers can complete and send the IRS either Form 4506-T, Request for Transcript of Tax Return, or Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Use Form 4506-T to request other tax records: tax account transcript, record of account, wage and income and verification of non-filing. These forms are available on the Forms, Instructions and Publications page on IRS.gov.Those who need an actual copy of a tax return can get one for the current tax year and as far back as six years. The fee per copy is $50. Taxpayers can complete and mail Form 4506 to request a copy of a tax return and mail the request to the appropriate IRS office listed on the form.
  • If taxpayers need information to verify payments within the last 18 months or a tax amount owed, they can view their tax account.
  • The IRS is now redacting tax transcripts so that sensitive information, such as the taxpayer's name, address and Social Security number, is partially masked. However, all financial entries, such as the adjusted gross income, are visible. The redacted transcript will better protect taxpayers from identity theft.