The IRS is encouraging taxpayers to take actions this month to help them file their federal tax returns in 2022, including special steps related to advance child tax credit payments and economic impact payments.

Child tax credit payments
Families who received advance payments will need to compare the advance child tax credit payments that they received in 2021 with the amount of the child tax credit that they can properly claim on their 2021 tax return. In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021.

Economic impact payments
Individuals who didn’t qualify for the third economic impact payment or did not receive the full amount may be eligible for the recovery rebate credit based on their 2021 tax information. They’ll need to file a 2021 tax return, even if they don’t usually file, to claim the credit.

Individuals will also need the amount of their third economic impact payment and any plus-up payments received to calculate their correct 2021 recovery rebate credit amount when they file their tax return. Ensuring they use the correct payment amounts will help them avoid a processing delay that may slow their refund.

In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received.

Charitable deduction changes
Taxpayers who don’t itemize deductions may qualify to take a charitable deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations. More information is available in Publication 526, Charitable Contributions.

More information about steps taxpayers can take now to prepare for filing their taxes in 2022 is available on the IRS website.