INDIANAPOLIS (WISH) — The first day of tax-filing season is Monday, so, if you don’t already, get your identification and documents ready.
Experts said you may want to hurry up and do it. Year 2 into the coronavirus pandemic, tax filers can expect some changes when they file their 2021 income taxes, particularly for people who received advanced child tax credit, filed unemployment, and switched multiple jobs.
Add that to a backlog of 2020 tax filings, tax preparers said, and filers could be in for some challenges.
Global Tax Services sits on Indianapolis’ east side. Shara Bowling is the owner and says she’ll be starting off the tax season booked and busy.
“With the pandemic and COVID-19, they brought a lot of changes, especially to the tax code.”
She said the last two years have changed some of the way she’s done business, providing in-person services but also virtual services. But at the center of that work, she’s helping people make sure they are filing correctly despite the added stress.
“It requires you to have to gather documents, find receipts, make sure that you have everything together,” Bowling said.
Adding to that, there’s a few keep things to keep in mind while filing. Have 1099 G forms for unemployment compensation, IPPIN letters for an identity protection for personal identification numbers, and 6419 letters for advanced child tax credit.
“If you were a recipient of that, then you were to receive a letter in the mail, a 6419 letter that you definitely need to have with your tax filing. If you don’t have that with your tax filing, it could cause delays.”
She said, after gathering proper identification, Social Security information and other documents, don’t put off filing for too long.
“The IRS has a shortage of people that can process the tax returns. They have a backlog from last year and even from the year before when COVID first hit.”
She said with so many dealing with financial struggles brought on the pandemic, it’s important file to avoid potentially hefty penalties and longer delays on tax returns.
For people investing in cryptocurrency, Bowling also notes, if people actually took out funds, they need tax forms for that, too.