January 2022 – Advance Child Tax Credit & Your 2021 Tax Return
As we begin our 2021 tax filing season, we wanted to send an important reminder on the Advance Child Tax Credit (ACTC). As we shared in a previous newsletter, the ACTC was distributed to eligible taxpayers throughout 2021. This program was initiated through the American Rescue Plan Act so taxpayers would benefit from the child tax credit throughout the year rather than all after year-end when taxes are filed. From July 2021 through December 2021, eligible taxpayers received early payments on their child tax credit.
Understanding Your Letter 6419
While taxpayers have kept records of the payments they received, the IRS has also made an effort to assist with recordkeeping. In January of 2022, the IRS plans to send letters to each taxpayer who received advance payments on the child tax credit. These letters will be titled “Letter 6419” and will list the total amount received in ACTC payments. If you received ACTC payments during 2021 and received this letter, please retain this letter in your records and provide it to us with your tax records.
Reconciling Your Advance Child Tax Credit Payments
If you received ACTC payments throughout 2021, your 2021 tax return will need to be adjusted to reflect the amounts you already received. So we can best prepare your tax return with this adjustment to the Child Tax Credit, please provide us with the following information:
- Your records showing the total amount of ACTC payments you received during 2021.
- Your Letter 6419 from the IRS, once you receive it.
Using the items above, we will adjust the Child Tax Credit on your 2021 tax return to reflect the payments you received throughout the year to ensure the credit is accurately reported and you receive the full benefit you are eligible to receive.
For more information on the Advance Child Tax Credit, please visit the IRS website here. To review frequently-asked questions, please visit the IRS website here.
As always, please feel free to reach out to us with any questions or concerns related to your advance child tax credit payments.
2022 Soukup Bush Deadlines
FEBRUARY 15, 2022: For our clients who own pass-through entities – please provide all documents and required information for partnership and S-corporation tax returns by February 15, 2022. In order to provide our best service, your tax return will be extended and completed after April 15, 2021 if there is still outstanding information needed by February 15, 2022.
Please Note: extended business returns will be prepared after the individual filing deadline, April 15, 2022. Thus, we will also be filing an extension for your individual return if we extend your business return.
MARCH 15, 2022: For our clients with individual and C-corporation tax returns – please provide all documents and required information for individual and C-corporation tax returns by March 15, 2022. In order to provide our best service, your tax return will be extended and completed after April 15, 2022 if there is still outstanding information needed by March 15, 2022.
2022 Filing Deadlines
JANUARY 31, 2022 – Form 1099 NEC and the related Form 1096 must be filed with the IRS for any non-employee compensation paid
FEBRUARY 28, 2022 – Form 1099 MISC and the related Form 1096 must be filed with the IRS for rents, royalties, or other payments (MARCH 31, 2022 if filed electronically)
MARCH 15, 2022 – Federal and state income tax returns are due for calendar-year flow-through entities, including partnerships and S-Corporations
APRIL 15, 2022 – Federal and state income tax returns are due for individual taxpayers, C-Corporations, and Estates and Trusts
SEPTEMBER 15, 2022 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations if extended
SEPTEMBER 30, 2022 – Federal and state income tax returns are due for trusts if extended
OCTOBER 15, 2022 – Federal and state income tax returns are due for individual taxpayers, and C-Corporations if extended
2022 Estimated Payment Deadlines
JANUARY 18, 2022 – 4th quarter estimated payments for 2021 are due to the IRS and Colorado Department of Revenue
APRIL 15, 2022 – 1st quarter estimated payments for 2022 are due to the IRS and Colorado Department of Revenue
JUNE 15, 2022 – 2nd quarter estimated payments for 2022 are due to the IRS and Colorado Department of Revenue
SEPTEMBER 15, 2022 – 3rd quarter estimated payments for 2022 are due to the IRS and Colorado Department of Revenue
Employee Spotlight: Nicole Walters
Nicole joined Soukup, Bush & Associates in August of 2013 after working 10 years at another local CPA firm in Loveland, Colorado. Nicole has been a licensed Certified Public Accountant in Colorado since 2003. She brings experience in tax preparation and review of various entities, tax planning, accounting services, and preparations of compilations and reviews.
Nicole graduated with a Bachelor of Science with an emphasis in accounting from Regis University in 2000 with Cum Laude Honors. She is an active member of the American Institute of CPAs and the Colorado Society of CPAs.
In her spare time Nicole enjoys traveling, skiing, hiking, and spending time with her daughter Tana, family, and friends.