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US tax reporting season starts on February 12th: stay on schedule and learn how to speed up repayments during the pandemic

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The 2021 season for account reporting in the United States is scheduled to begin on February 12th, according to an announcement by the Internal Revenue Service (IRS), the IRS. From that date, the agency will begin receiving and processing tax returns for fiscal year 2020.

To speed up repayments during the pandemic, the IRS recommends that taxpayers elect to submit their statements electronically as soon as they have gathered the necessary information. Interested parties can now begin to complete the document with the help of tax software companies, including free IRS partners. The statements are already being accepted now but will only be transmitted to the IRS as of February 12th.

The average income tax refund last year was $ 2,500. This year more than 150 million income tax returns are due, the vast majority of which before April 15th.

Under the PATH law, IRS refunds involving Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are not allowed before mid-February. The law provides that extra time to help the IRS stop issuing refunds and fraudulent claims, including for people who commit misrepresentation.

The IRS predicts that nine out of ten taxpayers will receive a refund within 21 days of the direct deposit date, if there are no issues with their income tax return.

To avoid processing delays, the IRS advises people to avoid filling out paper forms as much as possible and prioritize digital submission.

To expedite refunds and help with tax returns, the IRS recommends that people follow the following steps:

  • Present documents electronically and make direct deposit for faster refunds;
  • Check the IRS.gov website for the latest tax information, including updates on Economic Impact Payments. There is no need to call the IRS;
  • For those who may be eligible for stimulus payments, it is advised to carefully review the guidelines for Recovery Rebate Credit. Most people received Economic Impact Payments automatically. Anyone who received the maximum amount does not need to include any information about their payments when preparing the file. However, those who have not received a payment or have only received a partial payment may qualify to claim a Recovery Rebate Credit when they file their 2020 tax return. Tax preparation software, including the IRS Free File, will help taxpayers with the calculation of the value;
  • It is important to remember that prepayments of other stimuli received separately are not taxable and do not reduce the taxpayer’s refund when they file their claim in 2021.