The IRS has some areas of emphasis this year that can cause issues if you fail to provide the proper information. Specifically this relates to the Stimulus Check Payments and Child Tax Credits and CryptoCurrency (e.g. bitcoin).
When you are gathering information for your tax preparation, make sure to know the accurate answer to these questions:
IMPORTANT … ALL MUST ANSWER:
- Total amount of $1,400/person stimulus payments received. ______________ (This must match the information the IRS reported.)
- At any time during 2021 did you receive, sell, send, exchange or otherwise dispose of any financial interest in any cryptocurrency? ________ If yes, please furnish details.
IF APPLICABLE:
Did you receive monthly payments of the Advance Child Tax Credit? ______
Amount per month: ____________
Did you receive these payments all six months?_______
If answer is “no”, what is total you received. ________
Regardless of who does your taxes, make sure you have accurate numbers for all of these key points.
Finally, our friends at the IRS have put out their own #IRSTaxTip which is about Gathering all year-end income documents.
Click this link to get the “wisdom” straight from the source: https://go.usa.gov/xtrPf