The IRS expects a “difficult” year. It is more important than usual to avoid mistakes.
DALLAS – I thought my unread mail stack was bad (actually it is). But the IRS has a mountain of mail.
I told you not long ago how the tax agency has been out of office for much of the pandemic, so it still has to go through millions of paper returns from previous years that have piled up.
And now they are also trying to process this year’s tax returns. That’s why they keep advising you to file your return electronically and opt for reimbursements by direct deposit.
If your 2020 taxes have still not been processed and you are trying to do your 2021 taxes electronically now… you will be asked for your Adjusted Gross Income (AGI) from your 2020 taxes before you can click submit for your 2021 taxes .
This is the key: if you’ve kept that AGI number handy, don’t enter it. If your 2020 taxes still haven’t been processed, put zero dollars in this blank. Be careful of the tan box at the top of this webpage.
Plus, we’ve talked about this before: if you received last year’s COVID-19 economic stimulus payment, or any other prepayment of child tax credityou should get a letter from the IRS. In fact, you should probably have it by now.
The correspondence details the amount you received so you can get those numbers right on your return. If you don’t do the math right, expect your return to be sent back to you. And then you could be added to the dreaded backlog.
If you have not received these letters, you can also check your numbers by create an online account with the IRS.
But logging in lately has taken some patience. And even if the tax workload is enormous, the The IRS encourages some people who usually don’t file returns so go ahead and do it this time because you need to file to get some of the extended tax benefits available this year.
By not declaring, you risk losing money to which you were entitled.