Tax Filing Season Begins February 12 Learn More Tax Tips And Ways To Speed Your Refund
The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
The February 12 start date for individual tax return filers 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 and other benefits.
This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.
Tax Season Opens Soon
The IRS has announced that tax season will open Monday, January 24, 2022.
Some folks have suggested that a January start date is earlybut Im guessing they have a short memory. Its true that tax season opened a little later in 2021on February 12, 2021but thats an outlier due to the pandemic. The January 24, 2022, tax season open is on par with the open dates for the past few yearsJan. 27 in 2020, Jan. 28 in 2019, and Jan. 29 in 2018. In fact, other than last year, the agency has opened tax season in late January for more than a decade.
How Long Will It Take To Get My 2021 Tax Refund
The IRS says it intends to distribute most refunds within 21 days of processing returns. So the sooner you file, the sooner you could get your refund. But there are some exceptions.
Your refund may take longer if your return requires manual review, gets flagged as potentially fraudulent or is missing information. The IRS is also legally prevented from sending out refunds in connection with the the Earned Income Tax Credit or Additional Child Tax Credit before mid-February.
Last year, the IRS issued nearly 130 million tax refunds. The average amount was $2,815.
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Preventing Tax Return Identity Theft
Once someone gets access to your Social Security number, they have everything necessary to file a tax return in your name. The purpose of a fraudulent tax return is, obviously, not to pay your back taxes, but to pocket your tax refund. This scam occurs early in the tax season, well before most taxpayers file. Take every possible precaution to keep your SSN secret, and if possible, file your taxes early.
Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.
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Planning for the nations 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 nations 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.
Last years 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 April 15, deadline.
Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The law provides this additional time to help the IRS stop fraudulent refunds and claims from being issued, including to identity thieves.
The IRS anticipates a first week of March refund for many EITC and 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 Wheres My Refund for their personalized refund date.
Tips for taxpayers to make filing easier
Key filing season dates
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Extra Time To Pay Taxes You Owe
If you owe a balance due to the IRS, you may still have a good reason to file your tax return as soon as you can. If you submit your return in the middle of January, you do not have to pay taxes you owe until the filing deadline. Preparing your Form 1040 early will give you time to arrange your payment. This extra time is particularly helpful to taxpayers who need to find out exactly how much they will owe the IRS.
When Can I File My 2021 Taxes In 2022 And Other Key Irs Tax Return Filing Deadlines Extensions And Due Dates
The tables below shows key dates and events for filing federal tax returns with the IRS and/or requesting temporary extensions. Given the number of government payments to reconcile in 2021 returns like the expanded CTC and third stimulus checks , I expect there to a keen interest in the upcoming tax season. Especially for those expecting a large refund .
You can see and jump to past tax year schedules for reference via the sections below.
Covered in this Article:
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When Can You File For An Extension On Your Taxes
You can file an extension for filing your federal taxes up to the tax due date. Filing for an extension is free and it gives you until Oct. 17 to file your return. Note that this only extends when your tax returns are due. If you owe taxes, your payment is still due on the federal tax filing deadline .
Top 5 Reasons To File Your Taxes Early
OVERVIEW
Every year, many taxpayers wait until the last minute to file their federal income tax returns. Despite this tendency, there are many reasons to file your taxes early. If you will receive a refund, you may want to submit your return as quickly as possible. Additionally, there are benefits to filing early for those taxpayers who have a balance due.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
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To Make Filing Easier Taxpayers Should:
- File electronically and use direct deposit for the quickest refunds.
- Check IRS.gov for the latest tax information. There is no need to call the IRS.
Those who may have been eligible for stimulus payments should carefully review their eligibility for the recovery rebate credit. Most people received Economic Impact Payments automatically and those who received the maximum amount don’t need to include any information about their payments when they file.
The New Tax Season Wont Open Until Feb 12 The Irs Said Friday The Agency Is Still Processing Close To 7 Million Returns Filed Last Year
The IRS has announced that it is delaying the start of the 2021 tax season to Feb. 12 to allow the agency to get clear of the double burdens of millions of unprocessed tax returns from last year and stimulus relief payments.
People are already in a panic that they havent received either the first or second stimulus payment because their 2019 federal returns havent been processed.
A former certified public accountant emailed me that her adult son mailed his paper federal return in October and still hasnt heard a word from the IRS on its status or the $11,000 refund he and his wife are owed.
Theres nothing on the website that would give you some comfort that at least the return had been opened, said the New Jersey woman, whohelps her son with his tax returns. Ive spoken to four or five people at the IRS, and they said, Please dont file a duplicate tax return. I think there are millions of others who are in the same predicament.
Shes right.
The IRS received roughly 16 million paper individual returns last year. As of Dec. 25, the agency said, it still had 6.9 million individual tax returns in the processing pipeline which is over 40 percent. Interestingly, the IRS changed the language of its update from saying the returns were unprocessed. I assume it was to give people some hope that theres movement on their returns.
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Filing Early Lets You Avoid The Rush And Protect Your Identity
Lea Uradu, J.D. is graduate of the University of Maryland School of Law, a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, Tax Writer, and Founder of L.A.W. Tax Resolution Services. Lea has worked with hundreds of federal individual and expat tax clients.
Other Factors That Could Affect The Timing Of Your Refund
Additional factors could slow down the processing of your tax refund, such as errors, incomplete returns or fraud.
Taxpayers who claim the earned income tax credit or the additional child tax credit may see additional delays because of special rules that require the IRS to hold their refunds until Feb. 27. You should also expect to wait longer for your refund if the IRS determines that your tax return needs further review.
Refunds for returns that have errors or that need special handling could take up to four months, according to the IRS. Tax returns that need special handling include those that have an incorrect amount for the Recovery Rebate Credit and some that claim the EITC or the ACTC. Delays also occur when the IRS suspects identity theft or fraud with any return.
Respond quickly if the IRS contacts you by mail for more information or to verify a return. A delay in responding will increase the wait time for your refund.
If you submitted an amended tax form, it may take more than 20 weeks to receive a refund due to processing delays related to the pandemic.
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Tax Filing Season Begins Feb 12 Irs Outlines Steps To Speed Refunds During Pandemic
IR-2021-16, January 15, 2021
WASHINGTON The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
The February 12 start date for individual tax return filers 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 and other benefits.
This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.
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. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.
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.
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When Tax Filing And Processing Begins
As soon as you have all the necessary paperwork to begin the process, you can start filing your taxes. The IRS typically starts accepting and processing tax returns during the last week of January. In 2021, however, that date was set to Feb. 15 so that the IRS had time to account for tax-related changes cause by the global pandemic.
Most tax professionals and tax software programs, including those with the IRS Free File program, will prepare your tax return immediately if you have all your income documents in order.
What To Do Once Your Refund Arrives
For many people, their IRS tax refund is the biggest check they receive all year, the IRS says. In anticipation of your windfall, its wise to have a plan for how youre going to use your windfall. Deciding how to spend, save or invest the money in advance can help stop the shopping impulse from getting the best of you.
Your refund is yours to use how you see fit and can be used to help pay for day-to-day expenses or invested for long-term financial stability.
If youre expecting a refund, put it to good use. Looking for inspiration? Bankrate offers five smart ways to invest your tax refund.
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Irs Delays Start Of Tax Season To Feb 1: What This Means For Filers
The IRS is delaying the time it will start processing returns.AP
The Internal Revenue Service has pushed back the start of tax season to Feb. 12, a move that could delay refunds for millions of Americans.
Heres what you should know:
What changed?
Last week, the IRS announced the nations tax season will start Friday, Feb. 12. Thats the day the tax agency will begin accepting and processing 2020 tax year returns.
How much later is that than normal?
Last year, the IRS began accepting and processing returns from individual filers on Monday, Jan. 27.
Why the change?
The IRS said it has pushed back the filing start to allow for additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.
EIP impact
The IRS has handled two stimulus payments officially known as Economic Impact Payments since the start of the coronavirus pandemic. Distribution on the first started in March and included $1,200 per person the second was $600 per person and was sent to people in December 2020.
People who did not receive their payments may be eligible for a rebate when they file their 2020 taxes and thats part of the reason for the delay, the IRS said.
How to speed up your refund
The IRS is urging people to file electronically with direct deposit as soon as they have the information they need. Theres no need to wait until the new kickoff date to start filing.
Will there be a delay?
Refunds In March For Some
Early filers who claim certain tax credits will be waiting until the first week of March to get their much-needed refund. The IRS said this would still be the case if the filing season opened in late January.
Low-income taxpayers who receive the earned income tax credit or the additional child tax credit generally can’t receive a refund before mid-February.
That’s because an anti-fraud law requires the IRS to use the additional time to review those returns to prevent refunds from being issued to scammers.
The agency expects filers who claim the earned income and additional child tax credits will collect their refunds the first week of March assuming they file electronically and there are no issues with their returns.
Having your return flagged by the IRS can result in significant delays.
Last year, IRS fraud filters caught 5.2 million returns that were claiming refunds, according to a recent report from the Taxpayer Advocate Service, an IRS watchdog. For about a quarter of those returns flagged for income verification, refunds took longer than 56 days.
About 2 in 10 of the returns flagged for identity verification had delays of more than 120 days.
Normally, the turnaround time for a refund is about 21 days if a tax return has no problems.
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When Can I File My Taxes
Each year, the IRS issues a statement in early January with the first day to file taxes.
Typically, the official date when you can file taxes falls in mid to late January.
The IRS announced it will start processing tax returns Feb. 12. Worried about waiting weeks for your refund? We can do your taxes now and when you file at Block, you could get a Refund Advance up to $3,500 today. No waiting on the IRS. No loan fees and 0% interest.
It Can Depend On The Tax Credits You Claim
The Protecting Americans from Tax Hikes Act of 2015, commonly known as the “PATH Act,” began delaying some refunds in 2017.
If you’re expecting a refund because you claimed the earned income tax credit or the refundable portion of the child tax credit, the IRS isn’t permitted to issue your refund before mid-February, regardless of when you file your return. The PATH Act provides that the IRS needs time to examine returns claiming these refunds so it can prevent fraud.
You can check the status of your refund and get a more exact date after that time by visiting the IRS website.
You’re still subject to this delay even if your refund is only due in part to the EITC or the child tax credit. The IRS wont send you one refund for $1,000 and hold the EITC portion of your refund until the end of February if you overpaid $1,000 in taxes and are also entitled to a $1,000 EITC refund for a total of $2,000. Your entire refund will be delayed.
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