Attorney David Green shares what you need to know before filing your 2022 tax return.
Key Takeaways:
- The Child Tax Credit received in 2021 will impact your 2022 filing.
- Employers and employees are eligible to defer Social Security tax due.
- The IRS will work with you if you can’t afford to pay your deferred taxes due.
Will Child Tax Credit Received in 2021 Impact What I Owe or Claim in 2022?
Child Tax Credit received in 2021 may result in a higher or lower refund or additional taxes owed. Payments received during the year are based on estimates and assumptions, whereas the actual Child Tax Credit is calculated after determining what tax you owe. These payments could definitely impact or change your return.
I Received an IRS Math Error Notice – What Does This Mean?
An IRS math error notice simply means the IRS found what they believed to be an arithmetic error—adding, subtracting, or transposing numbers incorrectly. If you look at your return and discover they’re right and you agree, you should immediately pay the additional tax due or call them to set up a payment plan. Again, if you disagree, you need to call them and explain why you believe they are incorrect.
The IRS Is Issuing More Math Error Notices Than in Previous Years – What Seems to Be Causing This Surge?
The primary cause for the increase in math error notices is self-prepared returns. Many self-prepared returns are done by hand. Also to blame are poorly trained or untrained, self-proclaimed tax preparers who are not accountants. They are just not qualified for the complexity of today’s tax returns.
Who Was Eligible to Defer Their Social Security Taxes Last Year?
All employers are eligible to defer the employer portion of the social security taxes. For employees, if an employee makes less than $4,000 every two weeks, they can also defer their social security taxes.
If You Deferred Social Security Tax in Recent Years, When Are Those Payments Due?
One-half of the total amount of deferred Social Security tax is due on or before December 31, 2021, the remaining half is due on or before December 31, 2022.
What If I Can’t Afford to Pay the Deferred Social Security Tax?
If you cannot pay the social security due in full, you should call the IRS and let them know. They will be happy to help you set up a payment plan or installment agreement to pay the taxes over time.
For more information on IRS Laws in South Carolina, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.