WASHINGTON - The Internal Revenue Service announced that the nation's tax season will begin on Friday, February 12, 2021, when the tax agency will begin accepting and processing returns for tax year 2020.
The February 12 start date for individual taxpayers gives the IRS time to program and test IRS systems following the December 27 tax law changes that provided a second round of economic impact payments and other benefits.
This programming work is critical to ensuring that IRS systems run smoothly. If the tax filing season started without the correct schedule, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible individuals will receive the remaining stimulus money as a Refund Recovery Credit when they file their 2020 tax return.
To speed up refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can start filing their tax returns right away with tax software companies, including IRS Free File partners. These groups have already started accepting tax returns, and the returns will be transmitted to the IRS beginning February 12.
"Planning the nation's filing season process is a huge undertaking, and IRS teams have worked tirelessly to prepare for this, as well as deliver economic impact payments in record time," said Chuck Rettig, IRS Commissioner. "Given the pandemic, this is one of the most important filing seasons in the country. This start date will ensure that people get the tax refunds they need quickly, while ensuring they receive the remaining stimulus payments for those who are eligible as soon as possible."
The average tax refund last year was more than $ 2,500. More than 150 million tax returns are expected to be filed this year, the vast majority before the Thursday, April 15 deadline.
Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February. The law provides this additional time to help the IRS stop the issuance of fraudulent refunds and claims, including identity thieves.
The IRS anticipates a refund in the first week of March for many EITC and ACTC filers if they file their taxes electronically with direct deposit and there are no problems with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers should check Where is my refund? for the custom refund date.
In general, the IRS anticipates that nine out of 10 taxpayers will receive their refund within 21 days of e-filing with direct deposit if there are no problems with their tax return. The IRS encourages taxpayers and tax professionals to file their returns electronically. To avoid processing delays, individuals should avoid filing paper returns whenever possible.
