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.
Here’s what you should know:
What changed?
Last week, the IRS announced the nation’s tax season will start Friday, Feb. 12. That’s 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 that’s part of the reason for the delay, the IRS said.
“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,” 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. There’s no need to wait until the new kickoff date to start filing.
“People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners,” the agency said. The groups will accept tax returns now and then begin transmitting them to the IRS starting Feb. 12.
Will there be a delay?
Yes, it’s likely. The IRS has had a busy year with issuing stimulus payments and a third round – a likely event, according to president-elect Joe Biden – could slow things even more.
When can I expect a refund?
Generally, the IRS said 90% of filers will receive a refund within 21 days of when they file electronically if there are no issues with their tax returns. A late start to the official tax processing start means the 21 days would begin Feb. 12 as opposed to Jan. 27 last year.
Make sure to file electronically and use direct deposit to avoid delays, the IRS advises.
More delays
The IRS is prohibited by law from issuing refunds involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, allowing more time to prevent identity theft. The IRS said it will likely be the first week of March before most EITC and ACTC filers receive their refunds, a date almost identical to the previous year.
When is this year’s tax deadline? Unless it’s changed, the deadline for filing 2020 tax returns is April 15. The deadline for requesting an extension is Oct. 15.
How many tax returns will be filed?
The IRS expects more than 150 million tax returns will be filed this year with an average refund of more than $2,500.
"start" - Google News
January 19, 2021 at 07:11PM
https://ift.tt/3ipSU5E
IRS delays start of tax season to Feb. 12: What this means for filers - al.com
"start" - Google News
https://ift.tt/2yVRai7
https://ift.tt/2WhNuz0
Bagikan Berita Ini
0 Response to "IRS delays start of tax season to Feb. 12: What this means for filers - al.com"
Post a Comment