At a time when millions of people have money and are counting on their income tax refund or stimulus check, they have to wait a little longer before filing their taxes.
February 12th is the first date the Internal Revenue Service begins accepting and processing returns. This is a little later than the usual start. The tax season started on January 27th last year.
April 15th is the deadline for filing your taxes, unless you are
apply for an extension. (With an extension, you can submit your return until October 15th.
However, you still have to pay the amount due by April 15th unless you arrange one
Last year, the finance department moved the filing deadline to July 15 to avoid exposing taxpayers to an even worse spring money crisis if they owe something.
The IRS said Friday that the later start to this tax season will give it some respite to test systems and avoid delays in issuing refunds.
The tax office has gone through a year of temporarily closing its offices due to the pandemic, handing out a round of economic reviews and cutting off another round. In early December, the IRS was still processing 1 million tax returns that had been submitted during the previous tax season.
For fastest turnaround times, people should submit their taxes electronically with direct deposit information, the IRS said.
In 2020, as always, people can get their income tax overpayment refund. The average refund last season was $ 2,535. However, taxpayers also have the option to apply for stimulus check funds that they may have missed out on in 2020.
As of February 14th last year, the IRS had already processed 38.3 million returns and issued 18.1 million refunds, statistics show.
IRS Commissioner Charles Rettig knows that there is a lot of riding
on tax returns this year.
"Given the pandemic, this is one of the largest in the nation
important filing times at all, ”he said in a statement. “This start date will
Make sure people get the tax refunds they need quickly while also making sure they do
They will receive any remaining stimulus payments they are eligible for as soon as possible
While the filing start date is later, the IRS Free File Portal opened on January 15th. This service allows taxpayers earning less than $ 72,000 to file their taxes for free through partners of private tax preparation firms. They will start accepting returns January 15th and forward them to the IRS on February 12th.
Here is the link.
For those wanting a refund, here are some other important dates for this season:
February 22nd is the scheduled date on which the IRS Refund Tracker will display refund status information for individuals applying for the Earned Income Tax Credit and Child Additional Tax Credit. (According to the law, the IRS cannot release these refunds until mid-month, as there is a period of review to uncover false claims and potential identity theft.)
During the first week of March, refunds claiming these credits will be carried over to accounts.
Both loans are major sources of income for low- and middle-income families, and there are special review provisions this year that allow families to include their 2019 returns to maximize payouts from the loan.
Rep. Richard Neal, a Massachusetts Democrat, chair of the Ways and Means Committee, said he was "disappointed that this year's filing season is starting later than usual," but he knows the IRS is "exceptional throughout the COVID crisis Challenges stood. It is a relief to know that despite distributing two rounds of payments for economic impact, facility closures, and other disruptions, the agency can start accepting returns within the next month. "
Since 2007, there have been five years in which the IRS has postponed the start of the tax season to February, according to the agency.