Important Tax Filing Tips & Deadlines for 2021
The Internal Revenue Service announced that the nation's tax season started on Friday, February 12, 2021, but it is important to note that the filing deadline was not extended this year. **UPDATE: On March 17, 2021, the IRS announced that the Federal individual tax filing deadline will be extended to May 17. Some states have also extended state filing deadlines. Check with your particular state's tax department for updates.**
The February 12 start date for individual tax return filers gave the IRS time to do additional programming and testing of IRS systems following the December 27, 2020 tax law changes that provided a second round of Economic Impact Payments and other benefits.(1)
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. Overall, the IRS anticipates nine out of ten taxpayers will receive their refund within 21 days if they file electronically with direct deposit and if there are no issues with their tax return.
4 Tips for Taxpayers to Make Filing Easier
- File electronically and use direct deposit for the quickest refunds.
- Check IRS.gov for the latest tax information, including the latest on Economic Impact Payments.
- Those who may be eligible for stimulus payments should carefully review the Recovery Rebate Credit guidelines. Most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who did not receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return.
- Remember, advance stimulus payments received separately aren’t taxable, and they don’t reduce the taxpayer's refund when they file in 2021.
Key 2021 Tax Filing Season Dates to Be Aware Of
- First week of March: Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit, and have no issues with their tax returns.
- March 15: Tax filing deadline for businesses with LLC, S-Corp, or Partnership designations.
- April 15: Deadline for filing personal, sole proprietorship, and C-Corp 2020 tax returns.
- October 15: Deadline to file for those requesting an extension on their 2020 tax returns.
With the additional provisions for pandemic relief, tax season may be a bit different this year for many Americans. Be sure to be aware of the above deadlines and file on time and accurately to avoid any delays to your refund.