INCOME TAX 2021
FIND OUT WHAT THIS YEAR HAS IN STORE FOR YOU
Happy New Year!
NOTE: The IRS has announced that the tax filing season will start on February 12, 2021.
Let's say goodbye to 2020 once and for all and think positive thoughts for 2021: starting with the incoming vaccines, and then the income tax refunds!
Let's start with dispelling a common myth: The COVID stimulus payments you received in 2020 (and the second check whether you received it in 2020 or 2021) will NOT decrease your tax refund.
Although the 2020 tax season was significantly impacted by the COVID-19 pandemic, and the IRS extended the deadline past the April 15 date, the IRS has not indicated there will be a delay in this year's upcoming 2021 tax season, and it is not expected.
Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks, although it can take longer during the peak of the filing season, which starts in late March. So it's a good idea to e-file your tax return as soon as you have all of your tax documents (like your W2, 1099s, mortgage and student loan interest, and other items).
Several factors can determine when a taxpayer may receive their tax return, including:
How early they file
If the taxpayer is claiming certain credits (especially EITC and CTC)
Whether the return is e-filed or sent by mail
Whether the taxpayer has existing debts to the federal government
The COVID stimulus payments sent out earlier in the year will not affect your income tax refund. (However, some taxpayers who did not receive one, may be determined to have been owed one, in which case they may be able to have it added to their 2021 refund as a credit.)
Also worth noting: The IRS will delay processing by 2-3 weeks if an income tax return has the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), since these credits are often misused. The additional time allows the IRS to verify that taxpayers qualify for the credits.
If your IRS income tax refund is delayed after you've filed, ask your tax professional, or simply use the "Where's My Refund?" tool on the IRS website. Or download the IRS2Go app to check your refund status.
When will I get my 2021 Income Tax Refund?
What if you can't file your income taxes by April 15?
If you do not have all of the paperwork needed in order to file their taxes we can easily file an extension form for you. This will give you until October 15 to file your tax return. No reason or excuse is needed to receive this extension, and as the title states, it is automatically granted.
However, if a person will owe taxes, it is still their obligation to pay those taxes by April 15, even if they have requested an extension to file. We can assist you with this. Those who are due a refund generally only need to file the extension request by April 15. As your tax professionals, we would do this for you.