FOREST CITY, N.C. (WSPA) – The last thing anyone wants is for your tax return to be rejected.
“At this point in time, the best thing to do is to go ahead and get that form submitted so you’ll know if you’re getting a reject,” IRS Enrolled Agent Dan Thomas said.
Thomas, with Jackson Hewitt in Forest City, said there are three main elements that seem to be delaying the filing of tax returns this year:
- Stimulus checks
- The Advanced Child Tax Credit
Let’s deal with the last one first. It might be tempting to leave out information that reduces your refund or puts you in the red.
“We had one guy that came in and had a W2G, a gambling [form], a lot of gambling, and he had several thousand dollars of gambling winnings, and he said, ‘Oh, just leave it off.'” Thomas said. “We can’t do that. You cannot do that.”
If that happens, the IRS will be after you, and with a penalty.
Advanced Child Tax Credit
Taxpayers are also running into problems reporting the Advanced Child Tax Credit. Parents should receive 6419 letters (one per parent), telling how much they received. If a different amount is reported, it will get flagged.
No letter? No problem. Create an online account with the IRS through ID.me to see what amount the government shows you have for that credit and more.
It’s the same story with those 2021 stimulus checks; taxpayers reporting the wrong amount.
“If those numbers that the IRS says they got does not match the return, it’s going to be stopped,” said Thomas, who added taxpayers are coming in to file who don’t have the correct information.
But some checks might have been sent to the wrong address or bank account. If your information doesn’t match what the IRS has, Thomas said you’ll have to file your return on paper to make your case.
Speaking of mailings, watch out for bogus tax documents. Some Greenville County homeowners have received deceptive “warrants” claiming a tax debt is owed. Calling that “toll free” number on the document will only connect you with scammers, so always confirm before you pay any back taxes.
How do you maximize your refund?
- You can max out your IRA and a Healthcare Savings Account
- Report charitable contributions, even if you don’t itemize
“Last year it was limited to $300, this year they doubled it so if they are married filing jointly they get a $600 benefit, that can make a substantial sum of change because if you throw $600 on there and it’s a 20% tax bracket, then voila, there’s your savings on your tax return,” said Thomas.
Finally, Thomas said if you run into problems filing, don’t let the deadline come go without at least filing an “extension” (which doesn’t mean you don’t have to pay, but allows you to send in an estimated amount). The penalties for requesting an extension and underpaying are far less, Thomas said, than not filing at all when you owe Uncle Sam.