American Consumer Credit Counseling offers guidance on preparing and filing 2021 taxes
Boston, MA – February 22, 2022
American households readying for the tax filing season should take extra care in preparing their 2021 returns and take steps to avoid a massive IRS backlog, American Consumer Credit Counseling (ACCC) advised today.
The non-profit debt management and credit counseling agency serves thousands of Americans in every state in the U.S. Counselors from ACCC are receiving more inquiries every day about important tax-filing consideration as the Internal Revenue Service’s April 18 filing deadline approaches.
“Tax season can be particularly stressful for individuals and families that are focused on paying down debt and keeping their household on a budget,” said Allen Amadin, President and CEO of American Consumer Credit Counseling. “Every year brings at least some new rules or conditions that can impact consumers’ tax returns, affect their refund, or make a payment to the IRS necessary.”
At the beginning of the pandemic in 2020, the IRS introduced several tax filing exceptions. For 2021, the filing process returns to normal and the deadline to file taxes for most is April 18.
Here are some things that ACCC advises not to forget when filing 2021 tax returns:
- Advance Child Tax Credit: The IRS sent out a letter in January regarding the child tax credit: have this ready when filing for taxes. In some cases, people may need to pay some money back if some credits were not calculated correctly.
- Stimulus Check: Those who qualify for a third stimulus check received a letter in January as well. But not everyone who was eligible received the money. Taxpayers in this situation can request this stimulus check when filing their 2021 returns.
- Unemployment: Unemployment checks after March of 2021 are taxable. Have your 1099-G form ready when filing to know whether taxes were already taken out or must be paid back.
- Independent Work: If you are self-employed or do freelance work, you do not usually pay-as-you-go. With this in mind, have all the documentation of your work-related expenses ready because these are deductible and the total taxes owed can be reduced drastically.
Remember, the IRS has a free system to file for taxes if you have an Adjusted Gross Income (AGI) of $73,000 a year or less. Every person’s case is different, but the IRS works to find the right fit for each person at no cost.
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling, and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx