Of course, nobody wants to come home from a long day and see a letter from the IRS saying there were errors and mistakes made on your tax return. Not only will it be a nuisance but you would have to go through this entire process again when it could’ve been avoided by accurately filling out the information on the first try.
Claim The Child Tax Credit Properly
The Child Tax Credit provides aid to families with qualifying children to get a tax break. This tax credit can be worth up to $3,600 for each child under the age of 6 and $3,000 for each child between the ages of 6 and 17.
In 2021, you can get half of your credit by making monthly payments, and the other half by filing a tax return in 2022. Even if you don’t have recent earnings or don’t regularly file taxes, you may be eligible for the tax credit. The Child Tax Credit (CTC) may be able to reimburse you for some of these expenses at tax time. If you owe taxes, the CTC may be able to reduce the amount you owe.
Answer The Tricky Cryptocurrency Question
There’s a specific question on the first page of the 1040 tax form that seems to be giving taxpayers a hard time. It states, “At any time during 2021, did you receive, sell, exchange or otherwise dispose of any virtual currency?” All taxpayers are required to answer this question, not only those who had cryptocurrency transactions. Checking off “Yes” or “No” can save you a lot of time and trouble.
Track Your Charitable Contributions
Giving to charity is a great way to give back to your community and also have your taxes deducted from your returns. When it comes to charitable donations, make sure you keep detailed records of the dates, amounts, and names of places you donated to.
You would want to double-check that the document contains the correct amount, address, name, and date for the donations. A qualified charitable distribution (QCD) should be accurately noted on your tax return as well.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.