Tax Season 2022: Everything You Need To Know

Tax season is finally here.

Last year may have felt like a repeat of 2020 as a lot of people continue to rely on using Zoom for online meetings, stayed at home and still wondering if returning to the office is happening or not.

However, 2021 also brought changes to tax season, even giving people an extra month to file! But the 2022 tax season has things going back to normal. So here’s what you need to know.

Tax Season 2022: A Primer

While this year’s tax season will go back to normal, you will still encounter a few changes. Here’s a quick overview of what you need to know this 2022 tax season:

• The tax deadline for all federal tax returns and payments is April 18, 2022.
• To account for inflation, income tax brackets increased in 2021.
• There’s also an increase in standard deduction for 2021: $12,550 for single filers and $25,100 for married couples that file jointly.

Now, let’s go further into detail.

First off, the Internal Revenue Service (IRS) has already processed around 70 million returns for fiscal year 2021 and issued almost 52 million refunds. The agency has stated that taxpayers can still expect delays in processing returns, given that 2022 came with major tax changes like expanded child tax credit and stimulus checks.

2021 Tax Return Deadline and Extension

As mentioned, the deadline for filing taxes is April 18, 2022, which falls on a Monday. However, taxpayers in Maine and Massachusetts have until April 19, 2022 due to Patriots’ Day.

As for tax filing extensions, you can request for one by April 18 (or April 19) by filling out Form 4868 and you'll have until Oct. 15, 2022 to file a complete return. Keep in mind that this doesn’t extend your time to pay and you can be subjected to a late payment penalty if you do so.

When to Expect a Refund? And Should I File Early?

According to the IRS, if you file your tax electronically and choose a direct deposit, you can expect your return within 21 days, as long as you don’t encounter any problems. You can also check your refund status about 24 hours after e-filing or four weeks after mailing a return. You can use the IRS’ handy web-based tool for this.

As for filing early, the IRS has stated that as long as you have all your paperwork in order, then filing as early as possible is very much recommended, especially if you’re expecting a refund.

However, if you owe money, then you might want to wait until it’s a bit closer to the deadline, as it gives you more time to figure out how to pay in the most convenient way. Still, getting your 1099 as early as possible will help you better prepare.

Child Tax Credit and Cryptocurrency

The Child Tax Credit offers around $3,600 annually for children under 6 years old and $3,000 for ages 6 to 17. However, since six months of payments will be advanced on a monthly basis, eligible families will be able to receive $300 a month for each child under six years old and $250 per older child.

For cryptocurrency, note that the IRS treats them as property, so they are taxed similarly to stocks. This means that if an individual purchased crypto with USD, they shouldn’t have to worry about reporting it to the IRS this year.

However, if you trade crypto, sell crypto for fiat dollars or use crypto to buy goods or services, then reporting is required. The responsibility to keep accurate records of each transaction falls on you, since crypto exchanges won’t be able to send taxpayers 1099-B forms until 2023.

Best Tax Filing Software

If this your first year of filing taxes or you simply want to avoid the hassle of manual filing, you’ll be pleased to know that there are now e-filing options to make the whole process easier, one of which is H&R Block.

Since its inception, H&R Block has helped prepare more than 800 million tax returns and currently employs more than 80,000 tax professionals who have gone through at least 60 hours of training and a six-level certification program.

This means that when it comes to tax filing and other related tasks, you can trust H&R Block to be the expert, whether it’s through their step-by-step site guidance or a variety of available features to help you maximize your returns. It even explains concepts as you move forward with the filing process, ensuring that you can always keep track of where you are.

Due to the shift to electronic tax filing because of the pandemic, H&R Block has taken proactive steps to ensure that anyone using their software can have a hassle-free filing experience.

Some of its features include:

• Switching from another provider with ease
• Auto-import
• Donation calculator
• Platform mobility
• Step-by-step guidance
• Accurancy guarantee
• Tax return storage
• Free audit support

and many more!

Pricing and Free Version

If you want to save some money, then you can try out H&R Block’s free version, which allows you to file Form 1040, take your earned income tax credit and reconcile the advance child tax credit. More than that, it also helps claim any missing stimulus payment, handle unemployment income and file Schedules 1 and 3 of Form 1040.

Of course, there's an available smartphone app on both Android and iOS to make the whole process much more convenient and accessible.

If you want to take full advantage of their features, pricing is at:

• Deluxe - $44.99 (+$44.99 per state filed)
• Premium - $69.99 (+$44.99 per state filed)
• Self-employed – $109.99 (+$44.99 per state filed)

Conclusion

With tax-filing season already underway, it’s easy to fall into the trap of panicking about your returns or dreading the complicated process that are usually associated with taxes.

However, knowing is only half the battle, so preparing all the necessary paperwork will help give you a smoother experience. Just in case you still need help, H&R Block’s software is a fantastic option for conveniently filing your taxes online.

Learn more about H&R Block by clicking here.