Tax season is upon us

The season that is a certain as death – tax time – is about to start. The Internal Revenue Service put out some information and tips recently for taxpayers.

When does tax season begin?

Friday, (Feb. 12) is when the tax agency will begin accepting and processing 2020 tax year returns.

Why so late?

The Feb. 12 start date for individual tax return filers allows the IRS time to do 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.

What is the deadline for 2020 tax filings?

April 15, 2021

What is the fastest way to get a refund?

“To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need,” according to the federal agency. “People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting Feb. 12.”

“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig in a statement. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.”

What was the average refund in 2020?

Last year’s average tax refund was more than $2,500.

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.

When can early filers expect their refunds?

The IRS anticipates taxpayers will start to get refunds in the first week of March for many EITC and ACTC taxpayers if they file electronically with direct deposit and there are no issues with their tax returns.

The average time between filing and a refund is 21 days for those who file electronically, according to the IRS.

Tips for taxpayers to make filing easier

To speed refunds and help with their tax filing, the IRS urges people to follow these simple steps:

File electronically and use direct deposit for the quickest refunds.

Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments.

For those who may be eligible for stimulus payments, they should carefully review the guidelines for the Recovery Rebate Credit. 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. However, 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.

Are stimulus payments taxed?

Advance stimulus payments received separately are not taxable, and they do not reduce the taxpayer’s refund when they file in 2021.