The Tax Season 2021 won’t start until Friday, February 12, 2021, according to official declarations from the IRS. This is the starting date for filing your 2020 tax year return.
New Tax Season Simplified and Re-booked
Advancing the date to February 12 is a good thing. It gives the IRS a little more time to install additional programming and valuable testing of IRS systems. Never has a smooth-running tax season been more important to tax-payers. And perhaps they have never craved their refunds more. We are all aware American families and the economic system have been hurt by the coronavirus pandemic.
Therefore, the IRS must have time to gear up for changes that will facilitate the second round of Economic Impact Payments and other benefits, on top of processing the regular tax season tax returns and refunds. Thus, the IRS has a great deal more to do to get ready to give better us better service.
When Your Tax Reporting Season Starts
The IRS says, “Friday, February 12, 2021″ is when the tax agency will begin accepting and processing 2020 tax year returns.
Why Advance the Opening of the Tax Season?
Likewise, it is critical that the government complete its IRS programming work by the big Feb.12th date for the good of individual return tax filers. Otherwise, the IRS system could cause massive delays in refund payments to individuals. We do not want to even speculate how slowly the refunds would progress without the correct programming in place.
Not everybody was happy about the changes in the Tax Season Dates. Rep. Richard Neal, who is the chairman of the tax-writing House Ways and Means Committee, reported his disappointment with the late start of tax season.
“While I am disappointed that this year’s filing season will begin later than usual, I recognize that the IRS has faced extraordinary challenges throughout the COVID crisis.” He added his understanding however and recounted a litany of IRS challenges.
Tax Season 2021 Brings IRS Challenges
They and their employees have undergone facility closures, reorganization, budget stress and countless disruptions. None of this was the fault of the IRS. It was due to the coronavirus pandemic.
Here at Gavrilov & Co, we think it’s amazing the IRS can begin the tax season as soon as February. On a brighter note, these sweeping computer program changes will ensure “eligible people will receive their remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.”
How to Speed Up Your Refund
Of course, all of our clients want to know how they can accelerate their refunds during this pandemic. This is how the IRS hopes to accomplish your speediest return and handle the stimulus pay:
- The IRS is recommending taxpayers file electronically.
- They also hope tax-payers use direct deposit.
- As always they hope you organize your information properly. That hope has not diminished.
- Now, if you use a software company to file, you might have noticed they are already taking tax returns. They are preparing them now. Then on the proper date, Feb. 12, they will submit them.
- And the IRS is quick to include their own version of this type of software company, “the IRS Free File partners.”
- As we said above, “These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.”
Important Words for Tax Season 2021 from the IRS Commissioner
IRS Tax Commissioner, Chuck Rettig, stated, “Planning for the nation’s filing season process is a massive undertaking”. Additionally, the “IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time.”
And he added, “This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments …as quickly as possible.”
Point of Law: Extra time
Think of the enormity of the task ahead of the IRS. Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year. The vast majority before the Thursday, April 15 deadline.
Legal Changes in the TimeLine
Due to the PATH Act, it is important for you to know, that you cannot obtain the earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February 2021. There are no exceptions. That is simply because the law itself provides this special time for the programming. The upgrades will help the IRS stop fraudulent refunds cold. Plus, it will assist them in blocking illicit claims. The newest programming is also part of the government program to protect citizens from identity thieves.
- So you can anticipate EITC and ACTC refunds during the first week of March, provided you file electronically, use direct deposit—and most importantly have no issues with your return.
- For many of us, this would be just like the normal filing situation for most years in January.
- And don’t forget, you can always check “Where’s My Refund,” on the irs.gov website. There you can find your specific refund date.
Here’s the best news. “Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days.” This assumes they meet the above conditions. Our tax advisors think that is pretty exciting for many families struggling in the tax season 2021.
Here’s the Bad News –Or Maybe it’s Good?
Keep in mind that the above fast turn-around in refunds probably won’t include households who bring in more than $72,000 per year.
Take A New Look at Your Personal Finances: Understanding Dollars and Well-being
Whether you are above or below that $72,000 amount, we highly recommend that you begin to rely on your CPA. specifically, consult the executive accounting experts here, for more than a once-a-year consultation concerning taxes.
- We’ve expanded our financial services and wealth-building skills, with special strategies designed for doctors and entrepreneurs.
- Plus, we’ve widened our options for enhancing your financial educational abilities. (You’ll hear more about this in subsequent blogs.
Personal Finances: More Than Tax Knowledge
Now our newly expanded company can help you learn to navigate the ever-changing world of tax-planning and wealth-building to your advantage. Count on us and learn to become financially independent. You can elect to become an expert in planning your own personal financial advocate. (They don’t teach this in med school nor do they educate you for personal finance information in many other training programs.)
For 2021 and beyond, We are totally confident we can teach you the wealth management skills to build your life-style now, as well as create a future legacy. We’re here to help you find the new financial tools you need to live your best 21st-century life. The coming changes in personal finances post-pandemic are much more far-reaching than the tax season 2021 re-booking.