The Internal Revenue Service (IRS) has announced when the new tax season for 2017 will open in January. That’s when the IRS will accept electronic tax returns. They’re currently expecting about 153 million tax returns to be delivered by individuals this coming year.
But each year taxpayers have a lot of questions about filing, particularly when it comes to filing early. Take note that just because you submit it before the tax season opens doesn’t mean your tax return is processed. It just means you submitted it earlier.
Just because you submitted at the start of January doesn’t give you any advantages. The IRS won’t even look at your return before January 23rd. In 2017, taxpayers have a few extra days to get their documentation in order, so there’s no need to rush to submit early. Concentrate on getting everything right after you get your W2.
This year you have some extra days because of the way the Emancipation Day holiday falls, so the end of the tax season will be April 18th instead of April 15th.
Big Changes to the Way the IRS Works
John Koskinen, the commissioner of the IRS, stated that there are some changes taxpayers must be aware of this year. Months of hard work has been put into the new system by IRS employees and things like the EITC refund date has been changed. This is because of the trouble IRS systems have had with processing an increasing number of returns in the past.
The big change that taxpayers need to be aware of is a new law impacting the EITC and the Additional Child Tax Credit. By law the IRS must hold these funds until February 15th. The reason for this is that it’s meant to combat fraud. The IRS has warned that refunds are more likely to be processed by February 27th, however.
You need to make sure you’re planning accordingly, if you’re relying on these tax refunds for any future purchases.
The number one piece of advice you should take from this guide is that those who plan are going to have an easier time than those who take things as they come. Despite the changes hitting the tax system this year, you should continue to file with the same level of urgency as before. Don’t panic and don’t think you must do things differently. Most the changes don’t alter the way you file.
With regards to refunds, the IRS states that 90% of tax refunds are going to be processed in under three weeks. But you should be prepared for your refund to fall into that 10% category. Planning means that if you get unlucky, you’re not going to run into financial problems.
How You Can Start Filing Your Taxes Now!
The IRS may be opening the tax filing season on January 23, 2017, but there’s no need to wait until then to file your 2016 taxes. TurboTax is accepting tax returns today, so that you can be one of the early ones to get your tax refund. TurboTax will securely hold your tax return and submit it to the IRS the minute the doors open to file taxes.