Lazaro Aleman
ECB Publishing, Inc.
Typically, the Internal Revenue Service (IRS) begins accepting and processing individual income tax returns in late January.
This year, however, the agency has pushed back the day that it will begin accepting and processing 2020 tax year returns to Friday, Feb. 12.
“This start date will ensure that people get their needed tax refunds quickly while also making sure that they receive any remaining stimulus payments that they are eligible for as quickly as possible,” said IRS Commissioner Chuck Rettig.
The reason for the change, Rettig explained, is that his people will need the extra time to do additional programming and testing to ensure for the smooth and efficient operation of the agency’s systems following the Dec. 27 tax changes that resulted in a second round of Economic Impact Payment and other benefits to Americans.
“If the filing season were opened without the correct programming in place, there could be a delay in issuing refunds to taxpayers,” the IRS webpage states. “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 urges taxpayers to file their returns electronically as soon as they have the necessary information and use direct deposit to ensure the quickest return of their refund checks, especially during the pandemic.
“People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners,” the IRS website states. “These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting Feb. 12.”
The agency expects that more than 150 million tax returns will be filed this year, with the expectation that the vast majority of them will be submitted before the Thursday, April 15, deadline. Last year’s average tax refund, according to the IRS, was in excess of $2,500.
Overall, the IRS is projecting that nine of 10 taxpayers should receive their refunds within 21 days after filing electronically with direct deposit, provided that there are no issues with their tax returns. It underscores that to avoid delays in processing, people should avoid filing paper returns whenever possible.
The IRS advises that those who may be eligible for stimulus payments should review carefully the guidelines for the Recovery Rebate Credit. It notes that most people received their Economic Impact Payments automatically, and that anyone who received the maximum amount need not include any information about their payments when they file.
However, states the agency, those who didn’t receive a stimulus payment or received only a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return.
Finally, the agency reminds taxpayers that advance stimulus payments received separately are not taxable, and they do not reduce taxpayers’ refunds when they file in 2021.