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2022 tax filing season comes with new complexities — what to know

The IRS set a new, earlier date that it began accepting 2021 tax returns

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The 2022 tax season is here, but it will be more complex than in previous years. Here's what you should look out for. 

The 2022 tax season has begun, bringing with it some schedule changes and new complexities to the tax-filing process, according to a new report from Wolters Kluwer Tax & Accounting.

The Internal Revenue Service (IRS) released a new filing schedule for this year, having begun accepting tax returns as of Jan. 24, rather than last year’s Feb. 12 opening date.

Filers will also have a later deadline this year, though it's closer to the normal deadline than the extended one in 2020. This year, due to weekends and holidays, Americans will have until April 18th to file their return, giving them an extra three days.

"However, despite the return to a relatively normal filing period, the IRS also warns of significant potential difficulties with the filing season," the Wolters Kluwer report said. "The IRS encouraged taxpayers to file as soon as possible and to file electronically to help minimize the effects of potential tax season problems."

You may find yourself ending up with a smaller return while navigating this year’s tax complexities. Depending on your situation, a personal loan could help you to consolidate and pay down any high-interest debt you may have. Visit Credible to find your personalized rate without affecting your credit score.

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Here’s what is complicating income tax returns in 2022

New complexities brought on by COVID-19 and the government’s response to it, such as stimulus checks, could create various problems when filing federal tax returns in 2022, according to the Wolters Kluwer report. Here are some of the factors the report said could affect taxpayers this season: 

  • The IRS said there may be delays in processing 2021 tax returns because of a greater need for manual processing in some cases.
  • There was a larger and fully refundable Child Tax Credit in 2021 that needs to be tracked amid the advance monthly payments that were sent out.
  • Economic Impact Payments from 2021 will need to be calculated in the Recovery Rebate Credit. Taxpayers must distinguish payments made in early 2021 from those made later in the year.
  • More taxpayers could qualify for the enhanced Earned Income Tax Credit this year.
  • More middle-income taxpayers will qualify for the enhanced Child and Dependent Care Credit, while some higher-income taxpayers may not.

If you find yourself with outstanding debt as you're looking at your finances this tax season, a personal loan could help. Consolidating high-interest debt with a personal loan could help put money back in your wallet. Visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.

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Some tax refunds could be lower in 2022

Some of the aforementioned changes impacting 2021 tax returns could mean some families get lower tax refunds in 2022. This is due, in part, to the additional advanced child tax credit (CTC) payments, which were already partially paid out in monthly installments, rather than all at once during tax season.

However, some families, such as those that had children in 2021, could see higher refunds this season.

If you are expecting to receive a lower tax refund, you could consider using a personal loan to help you consolidate and pay down debt. Contact Credible to speak to a loan expert and get your questions answered.

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