When will the IRS settle for filers’ tax returns from 2021? Dates and deadlines

The Internal Revenue Service (IRS) announced that the tax filing season for individuals and corporations will begin on Friday, February 12, 2021. The tax authorities will start accepting and processing annual tax returns for 2020 from this point in time. However, taxpayers can get a head start by filing their tax returns instantly with tax software companies.

The launch date has been postponed to give the IRS time to run additional programs and tests of agency systems after December 27 changes to tax law that allowed for a second round of Economic Impact Payments (EIPs) and other benefits. The changes to the IRS systems will ensure that eligible individuals will receive any remaining stimulus funds as a refund credit when filing their 2020 tax returns.

Tax return deadline

Individuals and businesses filing their 2020 tax returns have until April 15, 2021 to submit and submit the required forms. The IRS urges taxpayers to electronically file a direct deposit once they have the information they need to expedite the tax return. The registration period for the 2019 return has been extended from April to July 15, 2020 due to the coronavirus pandemic. However, the filing date for the 2020 financial year has not changed.

If more time is needed, an applicant can request an extension and postpone the filing due date by six months to October 15. You must submit an application for an automatic extension of the U.S. income tax return filing (Form 4868) by April 15, 2021. The renewal gives you more time to submit. However, if you believe you owe taxes, you still need to pay the IRS the estimated amount you think you owe by April 15, 2021.

Important registration days:

  • February 12th: IRS begins the 2021 tax season. Individual tax returns are accepted and processing begins.
  • February 22nd: Estimated date for the IRS.gov Where’s My Refund tool to be updated for those claiming EITC and ACTC, also known as the PATH Act return.
  • First week of March: Tax refunds reach those requesting EITC and PATH Act Returns (ACTC) returns for those making direct deposit electronically and there are no issues with their tax returns.
  • April 15: Deadline for filing the 2020 tax return and paying the money due.
  • 15th October: Registration deadline for those who apply for an extension of their tax return for 2020.

IRS free file

Many individuals filing tax in the United States are eligible for a free program through the IRS. The IRS Free File Program, a public-private partnership between the agency and the Free File Alliance, a group of tax preparation companies with online software. Approximately 70 percent of those filing taxes in the United States can take advantage of the program. Even more may be able to file through other programs that offer tax preparation services at little or no cost.

To qualify for the IRS Free File Program, your 2020 Gross Annual Income (AGI) must be $ 72,000 or less. The software generally includes step-by-step instructions and help for filers. To take advantage of the program, you must go to the IRS website and not a tax advisor directly. Each partner has their own special offers, including some that offer free government tax returns. The free file opened on January 15th. This means people can now enter and submit their tax information. When the tax return opens on February 12th, your forms will be automatically filed with the IRS.

Do I have to pay taxes on my stimulus checks?

If you received an EIP (Economic Impact Payment), also known as a stimulus check, in 2020, this may affect your tax return for the 2020 tax year. The EIP was based on a person’s 2018 or 2019 tax return and was paid as a tax credit on that taxpayer’s 2020 tax return. The IRS has stated that the stimulus payment is not included in your gross income, which means you will not be taxed on it.

If you were eligible for an EIP in 2020 based on your economic situation, but did not qualify for a payment based on your AGI earnings in 2018 or 2019, you may be able to apply for a refund credit. However, if you were not eligible for a stimulus check due to your situation in tax year 2020 but received one, you can just rest. So far there is no provision according to which you would have to repay the EIP if your tax situation were to change in the 2020 financial year.