How to File Taxes in Year 2022

File Taxes

In this article, you will get to know how to file your taxes in the year 2022. We would also address certain queries often asked by taxpayers and other associated information you should know.

If you have done tax filling any time earlier, you would surely say that it’s quite a daunting task. If you are thinking about how to file taxes offline or online in 2022 (for the tax year 2021), this article can help you a lot. We are here to make your tax filing easier than ever before. We will try to answer some common queries that often come to the minds of taxpayers, as and when the tax filing deadline comes around the corner. Go through this article till the very end.

Do I Even Need to File Taxes?

Yes, if you ‘fulfill’ some criteria. Whether you need to file taxes depends on your age, income, tax filing status, whether you are claimed as a tax dependent by someone else and other such factors. Even if you do not fulfill these criteria to file taxes, doing it has certain advantages. Filing taxes may qualify you to receive tax breaks and you can thus claim a refund. Additionally, you should file taxes if-

  • You qualify for certain tax credits
  • Some amount of income tax has been withheld from your paychecks.
  • You made estimated tax payments
  • If your last year’s refund has been applied to this year’s estimated tax.

Therefore, you should consider filing taxes, if you are yet to file one.

Do I Need to File for 2021 Taxes in the Year 2022?

Yes.

When Should I Start Filing Taxes for the Year 2022?

The IRS has earmarked the beginning of the tax season for the year 2022 from 24th January 2022.

What are the Ways to File Taxes?

 You can file your taxes through any of the 3 main ways discussed below.

Fill Out the Tax Form Yourself

You can fill out the IRS Form 1040 or Form 1040-SR yourself. Then you can submit the same physically or mail (not recommended) to the IRS.

Use Tax Software and File Online

If you have used tax software before, you are probably aware of how to prepare and file online. Many premier tax software providers offer software packages with on-demand and online access to human tax professionals as well. These packages can answer queries, review tax returns and can even file your taxes online. The IRS Free File program also provides free online tax preparation software. However, to avail of this facility, your Adjusted Gross Income ( AGI) must be below $73,000.

Hire and Work with a Tax Preparer

If you are not finding it easy to file taxes by using software, you may hire the services of a tax preparer to do so. A professional tax preparer would guide you through the tax forms and help minimize errors while filing taxes. 

These days, you do not even leave your home to go and meet a tax preparer. You can take the help of a secure portal and share your documents electronically with the preparer. Usually, the tax preparer would email a link to such a portal to you. All you need to do is to set a password and upload PDFs or pictures of your tax documents.

How are your Taxes Calculated?

The Federal Government determines the tax you owe by branching your taxable income into chunks known as tax brackets. Each of these chunks is taxed at the tax rate fixed for the corresponding tax brackets. The important point to note here is that irrespective of the bracket you fall into, you will not need to pay the tax rate on the entire income you earn. This is known as the progressive tax system. This means taxpayers in the United States with higher taxable incomes are liable to pay higher federal income tax rates. Similarly, taxpayers with lower taxable incomes are liable to pay lower federal tax rates.

While Filing Taxes, What Information Related to Tax Filing should I Gather?

Whether you are doing the tax filing yourself or hiring the services of a tax preparer, you need to gather certain important information before starting the filing activity. This includes your proof of income, expenses that may help you deduct tax, expenses that may earn you a tax credit and proofs of taxes ( if any) you have already paid during the year and so on.

Other relevant information you should be ready with is as follows-

  • The Social Security Numbers (SSN) for yourself, your spouse and dependents.
  • W-2 form. It will show how much income you had in the past year and how much taxes you have paid already in taxes. If you had multiple jobs during that period, you may have multiple W-2 forms.
  • 1099 forms. They include information if you have received any money from some entity or person, other than your employer.
  • Contributions made by you to retirement accounts
  • Educational expenses.
  • Charitable donations
  • Interest accrued on property taxes and mortgage 
  • Unreimbursed medical bills.
  • State and local taxes you paid.
  • Federal and state tax returns of last year.

How to Settle the Taxes I Owe with the IRS?

If you owe taxes, you can settle the same with the IRS by sending money to them through multiple options. You can send via wire transfers, electronic payments, checks, debit and credit cards and even cash deposits.

If you are unable to pay your entire taxes at once, you can avail of the IRS payment plan. In this option, you make an agreement directly with the agency to pay the federal tax within a specified amount of time. There are two types of IRS payment plans: short-term and long-term. In both, you can opt to make monthly payments.

How to Ensure a Quick Refund?

Please note the following points, if you want to make sure the refund comes to your bank account quickly enough:

Avoid Filing your Tax Return on Paper

The IRS usually takes 6 to 8 weeks to process paper returns. On the other hand, when you file taxes online, your return should be processed within three weeks. The state tax filing authorities accept electronic tax returns as well. This means you may be able to get your state tax refund faster if you file electronically.

Have your Refund Sent by Direct Deposit

While filing taxes, you can opt to have the refund deposited directly into your bank account, rather than receiving a paper check from the IRS. This will save you a lot of time.

Track the Status of your Refund

You can track the status of your refund request on the IRS website. If you think it is taking longer than usual, send a query to the IRS team.

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