Individual Taxpayers News Alert!
The Internal Revenue Service (IRS) has announced that the tax season will open on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The IRS will begin accepting paper and electronic tax returns that day. The delay allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes, that provided a second round of Economic Impact Payments (EIPs) and other benefits.
To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need.
“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.”
According to the IRS, the tax return deadline remains April 15, 2021.
Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline.
The IRS anticipates a first week of March refund for many Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) taxpayers if they file electronically with direct deposit and there are no issues with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers will need to check Where’s My Refund for their personalized refund date.
Tips for individual taxpayers to make filing easier
To speed refunds and help with their tax filing, the IRS urges people to follow these simple steps:
- File electronically and use direct deposit for the quickest refunds.
- Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments.
- For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return.
- Remember, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.
Questions? Talk to one of our tax experts by calling (888) 388-1040.
Last updated: 1-21-21 at 4:15 pm.
