Question of the Day: On what date will the I.R.S. begin accepting 2020 tax returns?
Answer: February 12th
- Traditionally, the I.R.S. opens tax season in the fourth week of January (28th or 29th). How do you think that taxpayers might be impacted by this delay?
- The I.R.S. strongly recommends that taxpayers file electronically with direct deposit of their refunds into their bank accounts. How comfortable would you be providing your bank account information to the I.R.S. knowing that it’s the fastest way to get a refund?
Behind the numbers (I.R.S. website):
"The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns...
"Planning for the nation's filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time," said IRS Commissioner Chuck Rettig. "Given the pandemic, this is one of the nation's most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible."
Last year's average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline."
Have you heard the news? The IRS may be delayed until February 12th but NGPF has updated their Tax Unit already.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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