Stimulus payments aren't considered income for other purposes, either, such as eligibility for government benefits or assistance. There was a third stimulus payment sent out to eligible recipients starting on March 12, This amount will not be taxes. However, those who did not qualify or did not receive the full amount, may be eligible for the Recovery Rebate Credit based on their tax situation.
If you're eligible for a credit and don't owe taxes this year, your credit will provide a tax refund. There was a major change to the Child Tax Credit put in place in the spring of It helped many families receive advance payments of the credit.
If eligible, half of the total credit was paid in advance, and the other half can be claimed when you file your income tax return. The IRS has helpful tips for managing the changes come filing season in As soon as you have all the necessary paperwork to begin the process, you can start filing your taxes.
The IRS typically starts accepting and processing tax returns during the last week of January. In , however, that date was set to Feb. Most tax professionals and tax software programs , including those with the IRS Free File program, will prepare your tax return immediately if you have all your income documents in order. Typically, taxes must be filed by April However, this year, you have until April 18, to file a Form or Form SR and pay any tax due, according to the drafted IRS tax year instructions.
Those wishing to file their returns later can request a six-month extension from the IRS, pushing the filing deadline back to Oct. Typically, the extension end date falls on Oct. To receive the extra time, you must file Form rather than a tax return by the April date. The IRS has historically said that it issues refunds in less than 21 days for most returns, but it can take up to six weeks if you mail in a paper return.
The organization advises you to add another estimated 10 days to allow for the postal delivery process if you're requesting a paper check for your refund rather than direct deposit. If you're expecting a refund because you claimed the earned income tax credit EITC or the refundable portion of the child tax credit, the IRS isn't permitted to issue your refund before mid-February, regardless of when you file your return.
You can check the status of your refund and get a more exact date after that time by visiting the IRS website. You're still subject to this delay even if your refund is only due in part to the EITC or the child tax credit. Your entire refund will be delayed.
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We have flexible hours, locations, and filing options that cater to every hardworking tax filer. United States. United Kingdom. Kemberley Washington. Forbes Advisor Staff. Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Was this article helpful?
Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. More from. Even though many taxpayers file their tax returns on or about April 15, there is no need to put it off until the last minute. Indeed, filing an early tax return can make sense for a variety of reasons.
For starters, it gives you the time you need to collect the documents and information needed to claim all of your deductions. You will avoid the headache of last minute stress over receipts. If you use a paid preparer, your accountant will have a more flexible schedule and will be able to start working on your accounts sooner.
Also, filing early helps you avoid would-be identity thieves. One of the most important decisions taxpayers have to make is whether to itemize deductions or take the new, larger standard deduction available since The sooner you begin working on your tax return, the sooner you will be able to decide which method is right for you.
Getting a head start on your taxes will help you avoid an unpleasant surprise error when it comes to this important part of your tax return.
Once the IRS says it will begin processing returns, why not turn yours in and get this unpleasant task over with? For the filing season, the IRS issued refunds to Some people count on their income tax refunds to pay major bills. The sooner you file, the less time there is for an identity thief to file in your name and take your refund.
This can lead to all sorts of mayhem, especially if the thief claims false deductions, fails to report income, or otherwise taints a tax return in your name. Fixing a mess like this can take months. Filing early makes you much less vulnerable to identity theft.
You'll file before an identity thief can step in and file in your name. If you mail in your tax return, filing early avoids congestion and a crowded post office. Better to get it done and avoid the hassle. Filing early gives you time to fully understand any changes to tax law or deal with changes in your life that may alter your filing status.
Mistakes from rushing at the last minute can trigger audits that can lead to penalties and interest. Given changes brought on by the TCJA, this point is more important than ever. Early access means your CPA will have additional time to consider your situation more carefully and help you with your return. If you are in the process of buying a home or going back to college, it will require information from your recent tax returns. Preparing your taxes early will provide you with the most up-to-date information available.
Starting early gives you the time to file an accurate return. An inaccurate return will likely become an amended return. Amended returns invite audits. Here are some things to watch out for as you pursue accuracy. Check all incoming statements, including W-2s, s, interest statements, and anything used to justify a deduction.
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