People can start filing their taxes in late January, and the deadline is April 18, 2022.
But beware of people posing as the IRS. Scammers may call or text or direct message someone, saying they need to collect debt or personal information, and that is not how the IRS will reach out.
“They're not going to demand immediate payment or specific types of payment, either. So if you're receiving any of those kind of requests, definitely don't give out any personal information and you can report it to the IRS as well,” said Alexa Heter, accountant and owner of Heter and Associates.
The IRS will send letters, not text messages, emails, or social media correspondence. They will not demand specific payments and will have options and payment plans available.
For people who get income under the table or from side hustles or even from other than legal means, the IRS says, you have to report it.
“So the IRS did pass an interesting proposition this year, which basically says any type of income has to be taxable. And it included even in that unlawful income, gambling income. It was telling them they have to report if they stole. So basically, the IRS is wanting anyone to pay taxes if you had some sort of income,” Heter said.
Stimulus checks from Uncle Sam are not considered taxable income, but taxpayers will still need to record the amount of money they received on their taxes.
“They're not taxable... But you have to report what you received on your tax returns. That way, if you were underpaid, then you do get the difference with your tax refunds,” Heter explained.
In order to receive the stimulus checks, a person must have filed a tax return recently.
Families will also need to record if they received child tax credits in 2021, and in 2022 they will not be making advance payments.
“You have to report what you've received so far in advance payments on your tax return, and that goes against the total credit that you're receiving. So it'll go against the $3,600 or the $3,000, depending on the age of the child,” Heter added.
She went on to say, there are still a few things up in the air because the Build Back Better Plan was not passed, so issues like the Unemployment Exclusion haven’t been extended so far.
Last year, people got an exclusion of up to $10,200 for unemployment payments.