PEORIA MAGAZINE March 2022

G U E S T C O M M E N T A R Y

BY DARYL DAGIT CARTOON BY DANIEL ACKLEY TAX SEASON’S GREETINGS

Y es, it’s that time of year again. Are you aware of all the changes? The IRS is still working on last year’s tax returns and, like many employers, is short-staffed. You have until April 18 to file your taxes this year, but if you are looking for a quick refund, it’s best to file electronically as soon as possible. The IRS started accepting 2021 individual tax returns on Jan. 24. Two big issues this year are the child tax credits and the economic stimulus payments. Child tax credits were sent in up-front installments from July

through December of 2021. The IRS is sending statements of how much you received. It is important to subtract the amount on your statement from the total amount of credits you claim. If the amounts do not match, it will slow down your refund. Many taxpayers received a stimulus payment of $1,400 in 2021 based on their 2019 or 2020 return. As with the child tax credits, the IRS is sending letters that include the government’s record of stimulus payments sent to you. Meanwhile, if you have not fully funded your 2021 IRA, you have until

April 18 to do so. Keep in mind that the contribution limit is $6,000. There also is a catch-up provision of $1,000 if you are over 50. The income limits for joint filers are $198,000- $208,000, and $125,000-$140,000 for single and head-of-household filers in a traditional deductible plan. Depending on your tax bracket, contributing to your IRA can reduce your tax liability for 2021. Make sure to check with your tax advisor to see how much you can save on your taxes because you may be able to use your refund to fund all or part of your IRA. If you are over the income limits,

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