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When can I file taxes for 2020?
The IRS has announced that it will begin accepting returns for the 2021 tax filing season starting February 12th. These tax returns are for the 2020 tax year.
If you are ready to begin filing your tax return, you can get started now. Online tax filing providers can begin accepting tax returns before the IRS acceptance date.
They will simply hold your tax return and submit them the first day the IRS begins accepting 2020 tax returns.
The fastest way to ensure prompt processing of your tax return, and a quick tax refund, is to file your return electronically and select the ‘Direct Deposit’ payment option.
If you are claiming the Earned Income Tax Credit or the Child Tax Credit and are expecting a tax refund, the IRS has confirmed that it will begin issuing deposits the first week of March. Your refund will be available in your bank account and on any associated debit cards and may be used immediately.
Under the current laws, the IRS is unable to issue refunds to taxpayers claiming these two tax credits before the middle of February. The IRS is required to hold the taxpayer’s entire refund until this time, even the portion of the refund not originating with either of these two credits.
The reason for this is to give the IRS the time it needs to conduct anti-fraud procedures and detect any errors.
How Can I Make Filing My Tax Return Easier in 2021?
You should always opt to file your tax return electronically. Furthermore, you should opt for direct deposit to guarantee your refund is received quickly. It is also advised that you check out the IRS.gov website for the latest updates on the tax laws. You do not need to call the agency directly.
For 2021, be aware that you may be able to claim the Recovery Rebate Credit as part of the two stimulus programs authorized by Congress during 2020.
The majority of people have already received Economic Impact Payments, but if you did not receive the maximum amounts and you were eligible, you can claim the remainder of what you are owed through your 2020 tax return.
If you have already received the maximum stimulus amount, you do not need to include any information regarding these payments on your 2020 return.
The first Economic Impact Payment was valued at $1,200 for individuals, $2,400 for taxpayers who are married and filing jointly, as well as $500 per qualifying child. The second stimulus payment was half these amounts for taxpayers but $600 per qualifying child.
Qualifying children born in 2020 also qualify under the terms of the stimulus program.
If you are eligible for stimulus payments but are not usually required to file a tax return, you can use TurboTax to claim your stimulus money.
Stimulus payments are not a taxable payment. You can still get a stimulus check if you owe taxes. The IRS will not offset any unpaid taxes against the stimulus provided by the government
Dates to Remember.
February 12th, 2021 – The date the IRS begins accepting returns.
April 15th, 2021 – Due date for extensions to file requests and the due date for filing your 2020 tax return. Failure to meet this deadline may lead to penalties and interest.
October 15th, 2021 – If you have filed a request to file your return late, this is your new deadline for filing your 2020 tax return.