If you’re expecting a refund and want to know when you might get it, the Where’s My Refund? For example, let's say your tax refund was $500 and your stimulus check allotment was $500. File electronically and use direct deposit. The IRS likely will begin accepting electronic returns … On the flip side, if you owe a lot at tax time, you might need to make estimated tax payments for 2021. The good thing about filing your taxes early is that you don't have to pay your tax bill at the same time. If, however, you owe the IRS money, your Recovery Rebate Credit will be applied to the debt. Attention early tax return filers. That's a great reason to file early every year. The article "Tax Season Starts February 12: Why You Should File as Early as You Can" originally published on Grow+Acorns. The IRS will start accepting tax returns for the 2020 tax year on February 12, 2021. If you’re self-employed and have more room for retirement savings, you can still open and fund a SEP-IRA for 2020 through April 15. Benefit 3: The chance to set up direct deposit with the IRS or fix any errors. Normally, the filing period begins in late January, allowing early birds to submit their returns and get their refunds. (Here's what to do if you didn't get the IRS notice.). It's more frustrating for those taxpayers who, because of COVID-19 complications (which also created this year's filing delay), are really counting on their tax refunds to cover expenses. You should file your taxes early so you can avoid delays when waiting for your tax refund. Then fill out a new form W-4 withholding allowance certificate, and you’ll get more in each paycheck, instead of essentially loaning it to Uncle Sam. If you take out money for non-healthcare needs, you’ll owe taxes—plus a 20% penalty if you’re under 65. Benefit 1: The earlier you file your taxes, the sooner you'll get your tax refund (you can estimate the total here). In other words, it'll be bigger. There are a few solid reasons to file early. Faster assessment Gig work is taxable. The sooner you file your taxes, the faster you could see that stimulus cash. It did clarify that money purchase pension plans were eligible for the special rules. The deadline for filing your 2020 taxes is April 15, 2021. Unlike last year, the IRS has NOT extended the tax return deadline in 2021. Plus, getting your taxes filed could be your ticket to finally receiving the first or second stimulus payment if you're one of the millions who qualified for a check but didn't receive all the money -- even if it was a clerical error or some other issue that caused your check to never arrive. Advice on 2020 tax returns and stimulus check ... there's another reason to file early: To get your tax refund as soon as possible, ... 2021 / 7:44 AM The fastest way to get your money is to file electronically and have the funds deposited in a bank account. Personal Finance Insider named H&R Block the best tax software in 2021. you won't be filing taxes for 2020, and you're still owed a stimulus check. If you got a refund, especially a big one, you can use the IRS tax withholding estimator to determine how much tax to withhold from your paycheck. All Rights Reserved, This is a BETA experience. With Congress Debating Round 3 Stimulus Payments, Should You Rush Or Wait To File Your 2020 Return? But this year, the IRS won't start accepting 2020 tax returns until February 12, 2021. It took months and months to clear through the backlog in 2020, and the … Hence, Canadian taxpayers will have something new to tackle when filing their tax returns in 2021. In 2021, the IRS will begin e-File on February 12, 2021. Note: The enhanced retirement plan distribution rules were not extended for 2021 in the year-end 2020 tax package. If you're owed a tax refund and stimulus money, both will arrive as part of the same payment. Opinions expressed by Forbes Contributors are their own. ... 5 ways COVID-19 could affect your tax return. VIDEO 1:03 01:03 Here are the 3 … Details to come shortly in a separate post. If you picked up a side job during the pandemic, you have to include it on your tax return as self-employment income. Year to get your money is to file early every year during the pandemic you! The CRA reminds taxpayers to gear up and prepare returns for the 2020 tax season we ever. Hardship in 2020 than in 2019, or you had a new baby in the last four digits the. Can '' originally published early tax return 2021 Grow+Acorns, but 2021 is n't until April,... Backlog for paper returns is large and likely to grow, so anyone on 12. 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