DENVER (KDVR) – The deadline for filing your taxes is just under a month and a half away. Tax professionals across the state are busy helping people meet the deadline.
“It’s not a perfect world with the IRS. It’s a big ship,” said Sam Noshirvan, a tax partner at Timberline Tax Group.
Noshirvan helped clear up some confusion over stimulus checks and child tax credits when it comes to filing your taxes after FOX31 and Channel 2 received questions from viewers.
“None of this should be taxable. It’s all part of the Cares Act, it’s all part of the multiple negations that Congress had and passed into law,” Noshirvan said.
He explained that the two government payments are advances that can be used as a reduction or credit if you have a tax balance. If you don’t have a tax balance, it will become a refund.
For example, families across the country only received 50% of the child tax credit in June 2021. He said that once your taxes are filed, the remaining 50% will be applied either as a credit for this you owed, or as a refund.
“They would practically be entitled to the remaining 50% when they file their return. For most people, it’s basically a refund,” Noshirvan said.
Stimulus checks are in the same boat. Noshirvan said if you were to get one installment out of two of your stimulus money installments, then you would still be eligible for a credit on the remaining installment you didn’t get.
“If you were supposed to receive $2,400 in two installments, the remaining $1,200 that you didn’t receive would serve as credit,” Noshirvan said.
He said it’s important to include whether you have any missing stimulus payments, whether you’re filing taxes with an accountant or doing them yourself.
“The IRS should have it there, but you still want to do your own due diligence,” Noshirvan said.
If you haven’t received any stimulus payments and think you qualify for them, he said, check the IRS website.
IRS EIP Notice: We posted these notithese to the address we have on file.
- Notice 1444: Displays the first economic impact payment sent for the 2020 tax year
- Notice 1444-B: Displays the second economic impact payment sent for the 2020 tax year
- Notice 1444-C: Displays the third economic impact payment sent for the 2021 tax year
ILetter 6475: Until March 2022, we will send you this letter confirming the total amount of the third economic impact payment and any top-up payment you received for the 2021 tax year.
YesYou will need the total payment information from your online account or letter to accurately calculate your recovery rebate credit. For married filing spouses, each spouse will need to log into their own online account or review their own letter for their half of the total payment.
The deadline for filing personal taxes is April 15. You can file for an extension of an additional six months for an October 15 deadline.
Noshirvan said if you have any questions, it’s important to contact a professional for help.
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