2021 tax filing season begins Friday, Feb. 12
Posted on February 2, 2021
And… the tax season is officially upon us. The IRS will be accepting and processing 2020 tax year returns as of February 12, 2021.
That start date is a little later than last year’s to allow the IRS time to do additional programming and testing of IRS systems following late December Economic Impact Payments and changes to tax laws. These changes ensure that those eligible will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.
- More than 150 million tax returns are expected to be filed this year, so beat the rush. The earlier we receive your information, the earlier we can forward your information.
- To speed refunds during the pandemic, Teipen CPA Group encourages taxpayers to file as soon as they have all their tax information assembled – for the quickest possible tax refund turnaround.
- According to the IRS, last year’s average tax refund was more than $2,500.
- 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.
- Taxpayers will need to check Where’s My Refund for their personalized refund date.
According to the IRS:
- Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) 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.
- Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return.
- The IRS urges taxpayers and tax professionals to file electronically and use direct deposit. To avoid delays in processing, taxpayers should avoid filing paper returns wherever possible.
- For those who may be eligible for stimulus payments, they should carefully review Recovery Rebate Credit guidelines. 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.
- 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. However, advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.
Thursday, April 15, 2021 is the IRS deadline for filing 2020 tax returns.
As always, Teipen CPA Group encourages all our clients to send us their information as early as possible. In the meantime, if you have any questions, feel free to give us a call.