1. Parents Be on the Look Out. If you have been receiving the Advance Child Tax Credit Payments, please be aware that the current schedule of payments ended with the payment that was paid on December 15, 2021. In January 2022, the IRS will be mailing Letter 6419 to all families that received the Advance Child Tax Credit Payments. This is a very important letter that you will need to keep with your other 2022 tax-related documents.
2. Gather Documentation Now. As tax season approaches, it is best to go ahead and gather or request your 2021 annual childcare expense statements, pharmacy reports, charitable donation receipts, etc. Even though the federal standard deduction is high, it may be beneficial for you to gather these to claim on your state return.
3. Business Owner Reminder. Forms W-2, Forms 1099-NEC and any other 1099-type forms need to be provided to the recipient by January 31, 2022, and also mailed to the IRS by that date as well.
-Michael A. Hamner, CPA
Benefield & Hamner, CPA’s
206 Huntley Parkway, Pelham, 35124