Get these 3 things right when you file to avoid refund delays.
ABC Tax can help you avoid IRS processing delays. Here are the three biggest items which will sideline your refund.
1. Advance Child Credit
Advanced Child Credit deposits started in July of 2021. The IRS mailed checks or direct deposited $300 per child as an advance of what you claim on your tax return. Now everyone has to tell the IRS how much they received on their tax return. If you get it wrong, your tax return will be sidelined pending further investigation. T
he IRS will be sending letters showing the amount paid in advance in January of 2022. All IRS form-letters have a number. The number for the Advanced Child Credit is 6419. You will need this letter to complete your taxes!
Remember, the money the IRS sent out must be repaid if you no longer claim your child.
2. Covered in California Health Insurance
Covered in California Health Insurance must be reported on your taxes. The form you need to download from the Covered in California website is Form 1095-A.
Even if you only had Covered in California coverage for just one month, you still need to complete a lengthy form on your tax return. However, competing this form may increase your refund.
3. Recovery Rebate Credit (Stimulus Money)
Recovery Rebate Credit number three (commonly called Stimulus Money) was paid-out in March of 2021. You will need to report how much you received on your tax return.
The IRS will be mailing out letters to let you know how much they gave you. The number on the letter is Notice 1444-C or IRS Letter 6475.
If you missed-out on getting the money, it will be added to your refund on your taxes. If you owe on your taxes, then any extra rebate money with reduce the amount you owe.
Need help?
There are many other errors people make when preparing their taxes which will delay getting refunds. These are the big-three common errors. Let ABC tax Service help you receive your refund sooner. Call today or use the contact form to send us an email.
