IRS Reports Tax Refunds are Up This Year

According to the latest IRS filing statistics for period ended  March 18, 2022,  the average refund is up $539 compared to last year and is  $3,305.  This is the single biggest paycheck many people receive.  With over 75% of people getting a tax refund, there is no reason to wait to file.

If you haven’t filed your 2021 tax return yet (the taxes you file in 2022), here’s what you need to know including answers to questions you may have

1. Gather your documents in one place: When you sit down to file your taxes make sure you have all the necessary documents like W-2s, 1099s, receipts for expenses, mortgage interest, and your kids’ social security numbers in front of you.  If you received the third stimulus or the advanced Child Tax Credit, the IRS should have sent you two new forms, letter 6475 and letter 6419. Have these letters in front of you when you file, so you can report the correct amount and get any additional credits you’re eligible for.
2. E-file with direct deposit: If you are expecting a tax refund, e-file with direct deposit is easy, secure and the fastest way to get your federal tax refund. The IRS states that it will issue nine out of 10 tax refunds within 21 days or less when you e-file with direct deposit if there are no issues with your tax return.  The IRS usually takes six to eight weeks for paper filed tax returns, but they are backlogged for paper returns.
3. Double-check important information: According to the IRS, one of the top mistakes taxpayers make when rushing to meet the tax deadline is gathering incorrect Social Security numbers for their children and spouses. Make sure you have the correct Social Security numbers when you prepare your taxes. Correct Social Security numbers are required to get valuable tax deductions and  credits for your kids .
4. File even if you owe: Remember going on extension only extends the time to file your taxes, but if you owe you are still required to pay what you owe. If you owe money, you can also ask the IRS for an installment agreement when you file your taxes. The installment agreement will allow you to pay your tax debt over six years. Plus you may have a tax refund coming once TurboTax searches for over 350 tax deductions and credits you may be eligible for.

Don’t worry about knowing these tax laws. TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your answers.

If you have questions you can connect live via one-way video to a TurboTax Live tax expert with an average of 12 years experience to get help along the way and have your taxes reviewed before you file, or you can be matched to the right TurboTax Live tax expert experienced in your specific tax situation who can fully do your taxes for you. TurboTax Live tax experts are available in English and Spanish, year round to answer your questions.