The IRS has delayed the tax season until Feb. 12 due to COVID-19.
They will begin accepting e-filed returns for tax season 2021 on this date due to testing the IRS systems. This is also to ensure eligible taxpayers receive the Recovery Rebate Credit for their remaining stimulus payments.
Here’s what to expect this filing season.
Tax Refunds
Taxpayers who receive the Earned Income Credit (EIC) and Additional Child Tax Credit (ACTC) can expect their refunds in the first week of March. On the other hand, other taxpayers can expect to get their tax refunds within 21 days of e-filed acceptance with direct deposit.
However, the IRS advises taxpayers to e-file instead of paper filing this tax season to avoid further delays with their refunds. Typically, paper-filed tax returns will need to allow six to eight weeks for their refunds.
Important Dates to Remember
Keep a note on your phone or calendar for the following dates during tax season 2021:
- February 1 – Businesses must distribute Form 1099-MISC and 1099-NEC statements to it’s recipients
- Feb. 12 – The IRS begins accepting 2020 tax returns
- Feb. 22 – EIC and ACTC tax refunds should be updated on the Where’s My Refund tool by this date
- First week of March – Taxpayers claiming the EIC and the ACTC can expect their refund
- April 15 – The last day to file without accumulating penalties for those who owe taxes to the IRS
- October 15 – E-file and extension deadline for 2020 tax returns
Business Tax Deadlines
The tax deadline to file without accumulating penalties for partnerships and S-corporations is March 15. This is also the deadline for election to be an S-corporation. September 15 marks the extension deadline for both of these entities.
As a reminder, corporations have the same filing and extension deadlines as individuals.
Tax Tips
Tax season 2021 may bring some relief for taxpayers with missing stimulus checks. Keep in mind, the IRS advises eligible taxpayers who either didn’t receive their full stimulus payments claim the Recovery Rebate Credit.
View our helpful blogs below to find out what you need to know for this tax season.
- What are the Changes for Tax Year 2020?
- Recovery Rebate Credit FAQ’s
- Don’t Be Fooled By These IRS Scams
Get ahead of the game this tax season
The good news is, you can start on your 2020 taxes today by using our services. First, create an account, then enter your tax information, and lastly submit your account for e-file. We will transmit your tax return to the IRS once they start accepting tax returns on February 12th!
