It’s tax season once more! There are new rules and factors to consider while filing taxes in 2022.
*** Disclaimer: I am not a CPA or tax attorney, I am just a random guy on YouTube that enjoys talking and likes looking at ways to make and save money, so please do not take this as legal, professional, or tax advice; this is for solely for entertainment purposes only and when filing your taxes always consult a professional. ***
Also depending on where you live don’t forget about your state income taxes as well! In 2020 and 2021 stimulus checks and unemployment went out to millions, do not forget you do not have to pay taxes on your stimulus checks BUT you do have to pay taxes on your unemployment. In 2021, rebates were sent out as the first $10,200 of unemployment benefits collect in 2020 were exempt from taxes. THAT IS NOT THE CASE NOW. Congress at this time has not extended that benefit meaning you will likely need to pay the full amount on unemployment collected in 2021 when filing this year in 2022, If you did not have taxes withheld on your unemployment you will have to pay it when filing.
Stimulus checks that were not received but recipients were eligible can be claimed as a rebate on your 2021 tax returns. The third round of checks went out, $1400 to individuals and $1400 for dependents; you can claim these if you were missed.
Child tax credit rules for 2021 provided parents with advance cash payments. This means however when filing taxes those benefits will not be available to you as you have likely already received them. HOWEVER only half of the Child Tax Credit was sent as an advance, you should be able to receive the other half when filing your taxes. Currently, we are waiting to see if Congress will extend the Child Tax Credit expansion in the Build Back Better bill. At this time, it is not agreed upon so we could see these advances removed and go back to the original credits of $2000 received during filing.