Tax season is here. This time it’s a little different due to the COVID-19 pandemic, especially for those who lost their jobs during the pandemic last year. From stimulus checks to unemployment benefits, the influence that the tax brings could leave you with tons of questions. As you get started putting together your returns, here are some key things you need to keep in mind.
January 15: IRS Free File opens. Taxpayers can start filing returns through Free File partners.
February 12: IRS begins 2021 tax season. Individual tax returns begin being accepted and processing begins.
April 15: Deadline for filing 2020 tax returns.
October 15: Deadline to file for those requesting an extension on their 2020 tax returns.
Most Americans who are expecting an income tax refund can receive it by direct deposit in as little as 2 weeks. Yet it can take longer during the peak of the filing season, which starts in late March.
Another thing 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).
No, stimulus checks are considered income by the IRS. It is a refundable tax credit for 2020.
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Now, IRS are offering tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19). The tax season is here, we highly recommend IRS2 to those who haven't had it through. IRS2Go is the official mobile app of the IRS (Internal Revenue Service). This app allows you to check your refund status, make a payment, find free tax preparation assistance and sign up for helpful tax tips wherever or whenever you want. With its connection function with IRS servers to retrieve the refund status after inputting the filing status and the expected amount of return tax, you will have better management on the issue of return, payments and tax. Available for Android, iOS and even tablets devices.
Due to the pandemic, the tax refunds are postponed. To this day, millions of taxpayers are still waiting for their refunds, yet the wait might be worth it. The Internal Revenue Service (IRS) says it will pay interest on late refunds and it is hoping to have the refunds done before the next tax season.
The Internal Revenue Service (IRS) has started to send out tax refunds to people who wrongly paid taxes on unemployment compensation for the tax year of 2020, for these unemployment benefits were excluded from income tax in 2020.
