If you’re a salaried employee in the United States, chances are you’ve already received your W2 and your statement for much money you’ve made in the past year. Your W2 is your golden ticket for filing your taxes, or handing it off to a licensed tax professional. In this blog, we will cover some essentials that immigrants should be aware as they prepare to file in 2022. If you’re having trouble understanding the tax filing procedure, you can use this blog to better understand some of the key elements of tax filing and what to expect this year.
Processing Backlog
First off, there has been recent news that the IRS is currently experiencing a backlog of tax returns. Similar to the USCIS backlog, but perhaps not as severe, the IRS is dealing backlogged cases which means that this tax season individuals might be experiencing longer than usual wait times to receive their returns. The IRS notes that on average, returns will be sent to individuals within 21 days. This means 21 days upon receipt of filing, not simply contacting a tax professional to get the process started.
File Electronically
If you are going through a licensed tax professional, you probably don’t have to worry about this step as they will most likely be filing electronically already. However, applicants who are considering filing by mail should understand that this will significantly increase their wait time for a return with no guarantees. The IRS also hasn’t kept up with staffing per population increases in the U.S., so if you file by mail, it will naturally slow down your processing.
Earned Income Tax Credit or Child Tax Credit
Not only U.S. citizens qualify for an earned income tax credit (EITC). If you a green card holder (legal resident of the United States), you can also qualify for this. Basically, low to moderate income workers with qualifying children may be eligible to claim the EITC. However, if you are a green card holder, you must have been a legal resident for the entire year prior to claiming this benefit. For more information on the EITC, visit this IRS link: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-earned-income-tax-credit-eitc.
In addition, the IRS is noting that if you claim an EITC, your return processing will likely take longer than 21 days due to increase vetting procedures to combat fraud for those who don’t really qualify for this credit.
