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MASSACHUSETTS TO ISSUE REFUNDS NOVEMBER 1, 2022
BOSTON: In this past fiscal year, Fiscal Year 2022 (FY22), Massachusetts tax revenue collections exceeded the annual tax revenue cap set by Chapter 62F of the Massachusetts General Laws by $2.941 billion. In accordance with the statute, this excess revenue is being returned to taxpayers.
In general, eligible taxpayers will receive a credit in the form of a refund of 14.0312% of their Massachusetts personal income tax liability for Tax Year 2021. This percentage was finalized by the Department of Revenue after the 2021 individual tax return filing extension deadline of October 17, 2022. Please note that credits may be reduced due to refund intercepts, including for unpaid tax liability, unpaid child support, and certain other debts.
Distribution of refunds will begin on November 1, 2022 – eligible taxpayers will receive their refund automatically through direct deposit or as a check sent through the mail. If you have already filed your 2021 tax return and you had a tax liability, no action is needed, and you should receive your refund by mid-December of 2022. If you have not yet filed your 2021 return, you are still eligible if you file by September 15, 2023 and, if eligible for a refund, you should receive it approximately one month after you file.
WASHINGTON MARCH 2022
This year, more than ever before, those who don't normally have to file a tax return may wish to do so to get child-related tax credits that were expanded by the American Rescue Plan. These include the Child Tax Credit and the Child and Dependent Care Credit.
Filing electronically and using direct deposit is the safest and fastest way to file an accurate return and receive a tax refund. Taxpayers can use Where's My Refund? to start checking their refund status within 24 hours after an e-filed return is received or four weeks after the taxpayer mails a paper return.
The tool's tracker displays progress through three phases:
Refund Approved and
Most tax refunds are issued within 21 days, however, some may take longer. There are several reasons this can happen:
The return includes a claim for the Earned Income Tax Credit or Additional Child Tax Credit.
The time between the IRS issuing the refund and the bank posting it to an account may vary since many banks do not process payments on weekends or holidays.
The return may require additional review.
The return may include errors or be incomplete.
The return could be affected by identity theft or fraud.
The IRS will contact taxpayers by mail if more information is needed to process a return.
Earned Income Tax Credit and the Additional Child Tax Credit
Due to changes to the tax law made by the Protecting Americans from Tax Hikes Act (PATH Act), the IRS can't issue Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) refunds before mid-February. This includes the entire refund, not just the part that's related to the credit claimed on a tax return.
If a filer claimed the EITC or the ACTC, they can expect to get their refund March 1 if:
They file their return online,
They choose to get their refund by direct deposit and
No issues were found with their return.
Ignore refund myths
Some taxpayers mistakenly believe they can expedite their refund by ordering a tax transcript, calling the IRS or calling their tax preparer. Ordering a tax transcript will not help a taxpayer get their refund faster or find out when they'll get their refund. The information available on Where's My Refund? is the same. information available to IRS telephone assistors.
WASHINGTON - FEBRUARY 2022
— Now that the 2022 tax season is open, the Internal Revenue Service reminds taxpayers to make sure they've got what they need before they file and to consider free resources available to help them get organized.
Don't file before ready
While taxpayers should not file late, they also should not file prematurely. People who file before they receive all the proper tax reporting documents risk making a mistake that may lead to processing delays.
Typically, year-end forms start arriving by mail – or are available online – in January. Taxpayers should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address.
New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully.
Most eligible people were already issued their third Economic Impact Payment and won't include any information about it when they file. However, people who didn't qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475.
Individuals not required to file must file a tax return to claim important tax credits
The IRS strongly encourages individuals who are not required to file a tax return to file one this season to claim potentially thousands of dollars in tax credits. By filing a tax return, individuals could claim:
The Recovery Rebate Credit to receive any remaining 2021 stimulus payments that they might not have received (for example, if they added a new child or other dependent in 2021);
The remaining Child Tax Credit for which they are eligible, including any monthly payments that they might not have received (for example, if they added a new qualifying child in 2021); and
The Earned Income Tax Credit, the federal government's largest refundable tax credit for low- to moderate-income families (the amount of which has been nearly tripled for filers without children).
View IRS account information online
Individuals can use their IRS Online Account to securely access information about their federal tax account, including payments, tax records and more.
To help with filing a return, individuals can view:
The total amounts of Economic Impact Payments issued for tax year 2021
The total amount of advance Child Tax Credit payments
Their adjusted gross income from their last tax return
The total of any estimated tax payments they made, and refunds applied as a credit.
They can also now make and track payments and manage communication preferences, including the option to go paperless and request email notifications for certain notices available online. Taxpayers are encouraged to register for an online account, if they haven't already, or sign in to access this information and explore these new features.
Important 2021 tax documents
Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits.
Taxpayers should wait to file until they have all their supporting income statements including but not limited to:
Forms W-2 from employer(s)
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends and distributions from a pension, annuity or retirement plan
Form 1099-K, 1099-Misc, W-2 or other income statement if they worked in the gig economy
Form 1099-INT if they received interest payments
Other income documents and records reporting virtual or crypto currency transactions
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage
Letter 6475, 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit
Once taxpayers have collected all their tax documents and information, they're ready to consider how they will file.
IRS Free File is a great option for eligible taxpayers who are only filing a tax return to reconcile 2021 advance payments and claim the remaining portion of their Child Tax Credit or to claim the 2021 Recovery Rebate Credit, either because they didn't receive a third-round Economic Impact Payment or did not receive the full amount. IRS Free File can also be used to claim the Earned Income Tax Credit, which provides a refundable tax credit based on a filer's income and family size.
IRS Free File is available to any person or family who earned $73,000 or less in 2021. This year, there are eight IRS Free File products in English and one in Spanish.
Taxpayers can use a "look up" tool to choose from one of the Free File Providers. Each provider sets its own eligibility standards, generally based on income, age and state residency giving taxpayers who earned $73,000 or less at least one product to use for free.
Free File is just one way the IRS provides free tax preparation options to taxpayers through a partnership model. The IRS also partners with community organizations to train IRS-certified volunteers to prepare and electronically file basic income tax returns for qualified individuals for free.
Qualified taxpayers who generally make $58,000 or less, persons with disabilities and limited English-speaking taxpayers who need help preparing their own tax returns can get free tax help at one of thousands of community volunteer sites through the Volunteer Income Tax Assistance (VITA) program.
And the Tax Counseling for the Elderly (TCE) program offered by AARP, offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors.
Members of the military and qualifying veterans can use MilTax, a Department of Defense program that generally offers free online tax preparation and e-filing software for federal returns and up to three state returns.
IRS issues information letters to Advance Child Tax Credit recipients
IRS 2021-255, December 22, 2021
WASHINGTON — The Internal Revenue Service announced today that it will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Using this information when preparing a tax return can reduce errors and delays in processing.
The IRS urged people receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.
Watch for advance Child Tax Credit letter
To help taxpayers reconcile and receive all of the Child Tax Credits to which they are entitled, the IRS will send Letter 6419, 2021 advance CTC, starting late December 2021 and continuing into January. The letter will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.
Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.
The letter contains important information that can make preparing their tax returns easier. People who received the advance CTC payments can also check the amount of their payments by using the CTC Update Portal available on IRS.gov.
Eligible families who did not receive any advance Child Tax Credit payments can claim the full amount of the Child Tax Credit on their 2021 federal tax return, filed in 2022. This includes families who don't normally need to file a tax return.
Economic Impact Payment letter can help with the Recovery Rebate Credit
The IRS will begin issuing Letter 6475, Your Third Economic Impact Payment, to EIP recipients in late January. This letter will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.
Most eligible people already received the payments. However, people who are missing stimulus payments should review the information to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2020 or 2021.
Like the advance CTC letter, the Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return.
As the 2022 tax filing season approaches, the IRS urges people to make sure to file an accurate tax return and use electronic filing with direct deposit to avoid delays.
Experienced Attorney | CPA
IRS representation, Probate Administration, Wills, Trusts, Probate Estates, Business Sales, Accounting, Audit and Tax Law...
Scott M. Sawyer, is an Attorney admitted to practice in Massachusetts. He is also a Certified Public Accountant licensed to practice in Massachusetts, Vermont and New York.
Scott M. Sawyer is a graduate of Western New England University School of Law.
He received his Master’s Degree in Business at the Franklin W. Olin Graduate School of Business from Babson College in Wellesley, Massachusetts and his undergraduate degree from the University of Massachusetts, Lowell.
His experience includes more than thirty five years of working with businesses in such diverse industries as non-profit organizations, municipalities, retailers, wholesalers, manufacturers, law firms, real estate, forestry, aviation, and many others.
Please contact Scott M. Sawyer, Attorney at Law -CPA for a complimentary review of your business or personal legal, accounting and tax compliance needs.
Material presented on this website is intended for information purposes only. It is not intended as professional advice and should not be construed as such.