As Lawmakers scrambled to pass last-minute relief to Americans who are struggling in the wake of the coronavirus pandemic when 2020 came to a close, the changes on the tax laws at the last minute forced the IRS or the Internal Revenue Service to reset the start date of tax filing season, which means refund in tax, delayed as well.
However, the good news is that the qualified taxpayers are now receiving a second round of stimulus checks.
When to File Your Taxes?
Normally, the IRS will begin its process in tax returns in late January, however, this year the Interna Revenue Services pushed back the start date of the tax filing season to February 12, and the agency will not be accepting or processing any tax year 2020 returns, Huffpost reported.
The reason behind the tax seasondelay, is due to the changes in the tax laws which were passed on December 27, which made way for another round of stimulus checks and a number of COVID-19 aids, among many other things.
The delay on the tax return only means that the IRS needs extra time in order to update their systems in making sure that they will be having the correct numbers.
Lisa Greene-Lewis, a tax expert for TurboTax and a certified public accountant, explained that the start date in February will also give them time to have some additional programming.
In a press release on January 15, the IRS has mentioned that if filing season opened without updates to system programming, there will be a delay in the issuance of the refunds to the taxpayers.
The extra time set by the IRS will also ensure the eligibility of the taxpayers in receiving any remaining stimulus money as a Recovery Rebate Credit when they will be filing their 2020 return.
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Getting Tax Refund ASAP
Aside from the fact that the tax delayed start is primarily supposed to ensure that the taxpayers will be receiving any money owed to them as quickly as possible, But it also means that tax season will kick off with a backlog of returns that is ready to be processed.
The certified public accountant and expert for TurboTax also noted that last tax season, nearly 75% of the taxpayers are receiving a refund and its average amount was close to $3,000.
Moreover, if you are owed a refund this year, you should prepare so that you can one of the first individuals who were first in line when the IRS begins accepting tax returns.
Greene-Lewis also added that there is a need to gather all of your tax info now, depending on the financial situation and family size that you have, as filing the taxes can involve somehow a lot of paperwork.
She also shared a reminder that people need to make sure that they have all of their important tax documents and information such as W-2s, 1099, and dependent's SSN or Social Security Number on hand.
In addition, Greene-Lewis emphasized that having the correct information when sitting down And doing the taxes will also minimize delays in processing the tax refund.
