SafeAmerica Credit Union

stimulus checks

• By Kevin Alvarez

Tax Return Delays Likely, Here’s What To Do This Tax Season

Tax season is fast approaching! The pandemic has affected production on a multitude of levels and has taught us to be prepared for any delays whether it be shopping in person or even online. The Internal Revenue Service has shared it is faced with backlogs of up to 6 million in unprocessed individual returns. This tax season could very well have delays we are not in favor with. To help alleviate the burdens of the IRS and improve our chances of receiving our returns in a decent time frame, the IRS strongly suggests you do the following:

Use Free Online Resources Provided By The IRS

Filing taxes always brings a myriad of questions; questions we never know who to direct to, but the IRS. For this year’s tax season the IRS has shared, instead of calling in with your questions, you can visit the IRS’ Volunteer Income Tax Assistance (VITA) and/or Tax Counseling for the Elderly (TCE). Both programs are managed by the IRS and staffed with IRS-certified volunteers, who must take and pass tax law training which meets or exceeds IRS standards. To learn more and find a location near you, click here.

File Your Taxes Electronically This Year

The IRS strongly suggests taxpayers file their tax return electronically along with their direct deposit information as soon as all their tax documents have been made available. Tax payers should also check on the accuracy of all their information. Filing a tax return with errors or one that is incomplete may add to the overall delay of receiving your tax return. For the latest IRS forms and instructions, you can visit the IRS website at IRS.gov/forms.

Expect To Receive IRS Letters This Tax Season

People receiving these letters should keep them. Do not throw them away. These letters can help taxpayers, or their tax professional prepare their 2021 federal tax return.

Letter 6419 - Advance Child Tax Credit Payments

Did you know the Child Tax Credits were actually advanced payments on your 2021 taxes? The tax credit was temporarily expanded from $2,000 to $3,600 and the government began to pay half of the available credit via monthly payments from July through December. Those who opted out of advance payments will be receiving full refund amounts.

Each individual, even those who file jointly, should have received letter 6419, 2021 Advance Child Tax Credit. The IRS began sending Letter 6419 via the United States Postal Service back in December 2021 and has continued into the month of January. This letter contains information such as the total Advance Child Tax Credit amount as well as the number of qualifying children used to calculate the overall amount. Anyone who did not receive any payments listed is instructed to call the IRS before filing a return.

Letter 6475 - Economic Impact Payment

Letter 6475, Third Economic Impact Payment (Stimulus Money) was also issued out to individuals who received a third payment in 2021, in late January. This letter is needed to provide verification to the IRS that the taxpayer received the money.

What if I never received Letter 6419 or Letter 6475?

As mentioned above, to ensure you receive your refund, you will need the information on both letters. If you are missing either letter you can use the child tax credits portal to verify the information you need.

You always have the option to call the IRS at 1-800-829-1040, but remember, delays are imminent and strongly suggested you complete all your tax needs, electronically.

For more important IRS information, you can click here.

Tips To Make Filing Easier

  • Gather all your 2021 tax records, Individual Tax Payer Identification Numbers, Adoption Taxpayer Identification Numbers, and this year’s Identity.
  • Set up or log in securely at IRS.gov/account to access personal account tax information including balance, payments, and tax records including adjusted gross income.
  • Individuals can use a bank account, prepaid debit card or mobile app to use direct deposit and will need to provide routing and account numbers.

Key Filing Dates

Below are important dates taxpayers should be aware of this season:

April 18 — Due date to file 2021 tax return or to request an extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.

April 19 — Due date to file 2021 tax returns or request extension and pay tax owed for those who live in MA or ME due to Patriot’s Day holiday.

When it's time to file your return, remember that filing your taxes electronically and including your direct deposit information would result in the quickest possible return.

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The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations. Please discuss your particular circumstances with an appropriate professional before taking action.

• By Kevin Alvarez

Coronavirus (COVID-19) Scams: Safety Tips/Awareness

The viral COVID-19 pandemic has had a big impact on the health and financial sectors of our nation and SafeAmerica Credit Union wants to inform our community of the fraud sweeping the nation. There have been thousands of incidents regarding coronavirus scams in which people are being taken advantage of due to the sudden spike in emotional distress. So together, as a community let us make sure we understand the tactics and methods scammers are using to obtain our personal information.

The Federal Trade Commission reported…

Coronavirus scams Scammers are using the COVID-19 pandemic as a tactic to defraud consumers. In the first nine days of April 2020, consumers filed about 7,200 complaints along with $7 million in coronavirus-related fraud. A number that quickly grew from the $4.8 million lost in the first three months of the year, to collectively sum together the nearly $12 million lost so far. If this rate continues, Americans could lose a minimum of $100 million by July 2020.

How are Coronavirus Scams being used?

  • Fake Websites – Scammers have been impersonating legitimate websites with the effort of having unsuspecting people enter their sensitive information. There have also been reports of scammers asking for donations to help “fight” the pandemic.
  • Health Insurance - Scammers have been making calls, Robocalls (recorded messages instead of a live person) and even going door to door with claims that they can offer COVID-19 Test Kits, information verification for your health insurance, or any other supposed additional benefits.
  • Stimulus Checks –The IRS has reported that fraud checks have been mailed with strange dollar amounts with the goal of having potential victims call a number to “verify"  information in order to cash it. A method of acquiring personal information.

Who is being targeted for Coronavirus Scams?

The Internal Revenue Service has warned that Coronavirus scams are targeting seniors and retirees and should be the most financially vigilant during this time. As a reminder, the IRS will NOT be contacting anyone, this means no phone calls, emails, postage or even in person meetings in order to complete their stimulus check rebate. Scammers see the COVID-19 pandemic as a chance to take advantage of others, especially if they can sense emotional confusion.

As a result, during this time we need to…

Remember!

  • Validate who you are speaking with
  • Validate web addresses, emails and any attachments by looking out for any misspellings, suspicious links or lack of brand consistency
  • Be cautious of questions that may be a ploy to steal important personal information (Email, over the phone and even in-person)
  • Scammers see the COVID-19 pandemic as a chance to take advantage of others, especially if they can sense emotional confusion.
  • There is nothing wrong with hanging up phone calls
  • Most importantly that this will all soon be over.

An objective and informed mind is a great tool to have but with the current situation remember to take a break from screens, social media and news outlets to prevent any feelings of being anxious, nervous or overwhelmed.

To learn even more about coronavirus scams or the stimulus rebate from legitimate and direct sources, visit the following resources

irs.gov

Fcc.gov

Unitednations.news.covid19.org

For more information about what SafeAmerica Credit Union is doing to keep you safe, click here