The Internal Revenue Service announced that the nation's tax season started on Friday, February 12, 2021, but it’s important to note that the filing deadline wasn’t extended.
The February 12 start date for individual tax return filers gave 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.
To speed up refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. Overall, the IRS anticipates nine out of ten taxpayers will receive their refund within 21 days if they file electronically with direct deposit and if there are no issues with their tax return.
Tips for taxpayers to make filing easier:
- File electronically and use direct deposit for the quickest refunds.
- Check 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 Recovery Rebate Credit guidelines. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount doesn’t 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 aren’t taxable, and they don’t reduce the taxpayer's refund when they file in 2021.
Key Filing season dates to know:
- First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit, and there are no issues with their tax returns.
- April 15. Deadline for filing 2020 tax returns.
- October 15.Deadline to file for those requesting an extension on their 2020 tax returns.
The tax deadline is less than two months away, and with laws changing all the time, you should submit yours accurately and quickly. Reach out to our team today–we can help!
----
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
[1] https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic