The IRS announced that the 2021 tax season will begin on Friday, February 12, 2021, and they will begin accepting and processing 2020 tax returns. But you don’t need to wait to file.
TurboTax is now officially open and accepting e-filed returns. That means that you can file now and be first in line for your tax refund! TurboTax will securely hold your completed taxes, transmit them to the IRS, and state when they begin accepting returns.
To get your tax refund as quickly as possible, the IRS urges people to prepare their taxes as soon as they have the information needed to file and choose e-file with direct deposit. Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of acceptance when they e-file with direct deposit if there are no issues with their tax return.
Under the Protecting Americans from Tax Hikes (PATH) Act, signed into law in December 2015, the IRS cannot issue refunds that include Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) before mid-February.
The PATH Act, which applies to all tax preparation methods, is intended to help detect and prevent tax fraud. The extended refund release also gives the IRS more time to ensure taxpayers are properly claiming the credits, so they get the refund they are owed.
The IRS announced they will begin accepting and processing tax returns when they open for the season on February 12, 2021, and anticipate a first week of March refund for many EITC and ACTC taxpayers if they e-file with direct deposit and there are no issues with their tax returns.
If you have questions about the processing of your tax refund, the IRS “Where’s My Refund?” site is the best place to get personalized refund information when you need it.
For more information on the PATH Act and other tax laws, check back here with the TurboTax blog.