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The first day of tax season kicked off Monday allowing individuals to begin filing their 2021 federal tax returns with the IRS. Congress expanded several tax benefits this year, including the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Emergency Rental Assistance (ERA), as a result of COVID-19, which may lead to increased refunds for some taxpayers.

The CFPB released its guide to filing taxes Tuesday, which covers the increased benefits as well as how individuals can get ready to file. The guide offers instructions on the quickest and safest way to receive tax refunds through direct deposit and provides advice on planning for tax season yearly. 

Of note, IRS Commissioner Chuck Rettig Monday also commented that the agency will be “very focused” on taxpayers’ digital assets this tax filing season, in accordance with President Joe Biden’s expected release of the Administration’s digital asset strategy. The White House announced its plan to release a government-wide strategy, outlining digital assets’ opportunities and risks, in the form of an executive order.

Rettig stressed the importance of cryptocurrency regulation, citing underreported crypto income as a big issue. He noted that the IRS finds ways “to make sure that people aren’t able to hide assets that aren’t allowing us to collect tax revenue, and that’s exactly what we’re doing, working on rules that will allow us to do that and carefully working with the IRS to ensure that we’re in a place where we can capture the revenues that people owe.”

The IRS encourages taxpayers to use its online tools and resources to find information to help file 2021 federal tax returns. Individuals can use the IRS Free File, only available through IRS.gov, to file taxes and get additional support with the enhanced CTC and other important credits. 

NAFCU will continue to share helpful resources for credit unions and their members to help with the filing process this tax season.