Thanks to the pandemic, tax return processing will be starting a bit late this year.
Typically, the IRS begins accepting and processing individual income tax returns during late January, but a recent announcement from the agency explains that this year's start date has been pushed to February 12th, 2021. This delay provides time for the IRS to update and test their systems in the wake of the tax law changes attributed to the legislation passed by Congress on December 27th, 2020.
In order to receive your tax refund as swiftly as possible, the IRS strongly encourages taxpayers to file electronically with direct deposit. Paper filing is discouraged. The IRS claims that 90% of taxpayers will receive their refunds within 21 days of filing electronically with direct deposit.
According to the IRS, taxpayers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) should receive their refunds the first week of March as long as they file electronically with direct deposit (and no issues arise with their returns).
The IRS Free File program is currently accepting returns in advance; these will be transmitted to the IRS beginning February 12th.
If you are eligible for a stimulus payment but still haven't received one, you may be eligible for a Recovery Rebate Credit on your 2020 return.
The IRS's Where's My Refund? tool should be updated and available by February 22nd, 2021.
Although the filing season begins later than usual, the filing deadline remains the same as usual; be sure to file your taxes (or file for a 6-month extension) by April 15th, 2021.
Although the IRS won't be accepting returns until February 12th, there's no need to delay preparing your tax return so it's ready to go. Contact Seymour & Perry, LLC to set up a consultation.
