This requires three critical steps on your part. “File electronically. File accurately. And request direct deposit for your refund,” IRS Commissioner Charles Rettig said Monday in a press call. “If there’s a problem with your return it can create an extensive delay.”
As you aim for accuracy, keep in mind the many tax-related variables from last year — such as receiving a third stimulus payment or advanced payments of the expanded child tax credit.
The filing deadline
The federal tax filing deadline this year is Monday, April 18. That’s the day by which you must have filed your 2021 individual return and paid any remaining federal income taxes owed for last year.
In addition, the tax filing and payment deadlines will be extended for anyone living in counties declared federal disaster areas due to recent natural calamities.
Those affected taxpayers also will have until May 16 to make 2021 IRA contributions. Everyone else must make their 2021 IRA contributions no later than April 18.
Don’t be surprised by delays
While every tax season is busy for the IRS, pandemic-induced backlogs from the past two years coupled with limited funding will make the current tax season even more so.
One example: Last year, the agency was unable to answer more than two-thirds of the calls it received.
This year is likely to be just as frustrating. That’s why tax filers are encouraged to first use the online tools provided on IRS.gov to get answers to their questions before reaching out to the agency directly.
“Expect phones lines to be jammed up for the forseeable future,” Rettig said.
Be on the lookout for IRS letters
If you received advanced payments last year for the recently expanded child tax credit or you got a third stimulus payment (a.k.a. Economic Impact Payment) last spring from the IRS, be on the lookout for a letter pertaining to each from the agency.
If you have questions or concerns about the amount reported in your letter, create or check your existing online tax account at IRS.gov, which should have the latest number on record with the agency, Corbin said.
How to ensure you get your refund as quickly as possible
The majority of tax filers are typically owed a refund.
The IRS is likely to deliver your refund within 21 days of receipt — its typical turnaround time — but only if you fill out your return accurately and completely, file it electronically and opt to have your refund delivered through direct deposit.
For anyone expecting a refund due to the Earned Income Tax Credit or Additional Child Tax Credit, the IRS is prohibited by law from issuing it before mid-February in order to give the agency time to stop fraudulent refunds from going out. But affected filers may still file their returns beginning on January 24.
Corbin noted that due to holidays, weekends and bank processing time, filers expecting refunds due to the EITC and ACTC should expect to see them starting in early March.
Source : CNN