Filing taxes in two states? What about the child tax credit? Your KC tax questions, answered

Are you confused about your taxes this year?

The IRS began accepting returns in January, and this year’s filing deadline for most taxpayers will be April 18, 2022.

If you have questions about if you need to file in two states, what’s up with the Child Tax Credit, why your return may be delayed or where to get help if your return never came last year, we’ve pulled together some information to help.

What documents do I need?

To get your taxes started you will need a photo ID and income documents. Acceptable income documents include W-2s from work, 1099s if you are self-employed or proof of unemployment.

If you received any special credits like the Child Tax Credit or the Third Economic Payment, you will need a special letter verifying that income as well, but more on that next.

Taxpayers will also need their social security number or ITINs for every person listed on the tax return (i.e. spouses and dependents).

How do I get the Child Tax Credit?

Many Child Tax Credit recipients have received half of their credit in advance. Families must file a 2021 return that includes a document called IRS letter 6419, in order to receive the second half of the Child Tax Credit, according to the IRS.

The IRS sent this letter out to recipients starting in late December. According to the agency, the letter reads “2021 Total Advance Child Tax Credit (AdvCTC) Payments” near the top of the document.

This letter will include information about how much each family received and make sure the tax return filed is accurate. Folks who are eligible for a Child Tax Credit but didn’t receive one can claim the full amount when filing their 2021 tax return.

For people who do have questions about the tax credit or misplaced their letter can visit the IRSs child tax credit update portal online.

Third Economic Payment letter

The IRS also sent out a letter for the third Economic Payment, better known as a stimulus check, in 2021.

The letter was sent out last month and reads “Your Third Economic Impact Payment” on the top and “Letter 6475,” on the bottom right of the document, according to the agency.

This letter will be especially useful for those who have yet to receive their stimulus check, as it will help them claim a recovery rebate credit. Similar to the Child Tax Credit, you must file a 2021 tax return to claim a rebate credit for a missing stimulus check, according to the IRS.

Can I write off COVID-19 expenses?

Masks, hand sanitizer, COVID-19 tests and other personal protective equipment used to prevent the spread of COVID-19 are considered tax deductible, according to the IRS. However, there are some requirements before you can write off all the K95s you bought on Amazon this year.

PPE bought by a taxpayer is deductible when that taxpayer’s overall medical expenses are more than 7.5% of their adjusted gross income, according to the IRS.

Educators can also deduct up to $250 of equipment used to prevent the spread of COVID19 in the classrooms. Eligible items include masks, air purifiers, disinfectant and plexiglass.

How to get your refund as soon as possible?

Julie Riddle, who is a financial specialist with the Kansas City Tax Coalition, a group of institutions and volunteers that aims to provide free tax services to Kansas Citians, said that delays are expected this year.

“There’s not a single institution or individual that has escaped the effects of COVID,” Riddle said in an interview in January. “The IRS is understaffed, right now, they’re not working in the office, largely they’re working from home. And so part of our job is, unfortunately, it’s just to help normalize the little bit longer waits, and let people know that it’s just going to take longer.”

One way to avoid delays with your return is to file online and set up direct deposit.

“Taxpayers should electronically file and choose direct deposit as soon as they have everything they need to file an accurate return,’ the IRS said in a statement. “For those using e-file, the software helps individuals avoid mistakes by doing the math. It guides people through each section of their return using a question-and-answer format.”

Do I need to file taxes in Missouri?

If you earn income in Missouri, you need to file a state tax return in addition to your federal one, even if you live in Kansas. You will be taxed in Missouri based on what you earned in Missouri. Here’s where you can learn more about filing state taxes in Missouri as a non-resident.

If you live in Missouri but work in Kansas, you still need to fill out a Missouri tax return, but you may be able to get a credit for the income tax you pay to Kansas.

You don’t need to fill out a state tax return if you live in Missouri and earned less than $1,200 in income, or if you live in a different state and earned less than $600 in Missouri, according to the Missouri Department of Revenue.

Missouri state income taxes are due on April 18, 2022.

Do I need to file taxes in Kansas?

If you earn income in Kansas, you need to file for a state income tax return after you complete your federal return, even if you live in Missouri, according to the Kansas Department of Revenue.

To learn more about who all needs to file for Kansas income tax returns, check out the department of revenue’s instruction booklet for individual taxpayers. Visit the department’s website for additional information on personal and businesses taxes.

Those filing can file and make payments online with the department. Each taxpayer will also need their social security number for each person listed on the return, similar to their federal returns.

For Kansas specific questions call the Kansas Taxline at 1-785-368-8222

The Kansas deadline for individual tax returns is also April 18, 2022.

Where to get help with preparation

There are a number of free tax preparation services available in the greater Kansas city area. The IRS’s Volunteer Income Tax Assistance (VITA) is available to anyone who made $58,000 or less in the previous year. Each location is powered by trained volunteers dedicated to helping folks get their tax return filed.

“I think [people] worry about the IRS being this kind of big behemoth that doesn’t see them as individuals, and that is they do something wrong, they’re going to get in a lot of trouble,” said Riddle, with the Kansas City Tax Coalition.

“So one of the things that we try to do with taxpayers, and also all of our partners, is just demystify that process a little bit.”

The IRS also hosts an online tool called Free File and it is available for anyone who made $78,000 or less in 2021. Check out the Star’s guide on where to get free tax preparation help in Kansas City.

What if I have an issue with a previous tax return?

If you have yet to receive a return from 2020 or are experiencing other issues with your taxes, there are tax clinics available to help.

Many tax clinics may be affiliated with VITA programs and aim to help clients who are considered low-income. Although they do not offer tax preparation services, they can help with resolving issues related to tax delinquency and other issues.

If you are still waiting on a tax return from a previous tax season, Riddle recommends reaching out to the IRS’s Taxpayer Advocate Service. Similar to local clinics, this service will help you voice your concerns and resolve issues with the IRS.

The IRS also has taxpayer assistance centers in both Kansas and Missouri.

Do you have questions? Email us at kcq@kcstar.com or ask us using the form below.

This story was originally published February 8, 2022 at 5:00 AM.