Attention tax paying citizens! It’s that time again! Tax season is among us. The IRS has begun accepting and processing 2021 tax returns today, Monday, Jan. 24, which is three weeks earlier than last tax season, when it began on Feb. 12. Despite the fact that you can file earlier this year, there will be a few changes from last tax season. For starters, compared with the 2020 returns, jobless benefits will be treated differently. Additionally, you will also need to account for advance payments made under the Child Tax Credit, the return of the Recovery Rebate Credit, and a special break for charitable contributions.
Something that hasn’t changed unfortunately is the possibility of a delay for your taxes due to COVID-19. According to USA Today, the IRS is warning taxpayers that because of a resurgence of COVID-19 infections coupled with less funding from Congress and the Biden administration, filing and receiving your taxes may be a bit of a challenge. IRS Commissioner Chuck Rettig released a statement saying “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays.” Rettig is encouraging taxpayers to file their tax returns electronically and have their refunds deposited directly into their bank accounts as soon as possible. According to the IRS, refunds can be deposited into bank accounts, prepaid debit cards, or mobile apps as long as a routing and account numbers is provided.
For most people, the deadline to file their 2021 income tax returns is Monday, April 18, three days later than the normal April 15 deadline. Additionally, April 18 is the deadline for requesting an extension as well. If approved for the extension, taxpayers will have until Oct. 17 to file their 2021 returns. As in the past, the IRS anticipates that most taxpayers will receive a refund within 21 days of filing, if filed electronically. Finally, according to IRS instructions online for the 2021 tax season, if your adjusted gross income is less than $73,000 in 2021, you can prepare and electronically file your tax return with free tax software. Detroit, its that time get those taxes filed.