WASHINGTON – While millions of Americans expect a tax repay this year, the IRS has a request for those looking to get their money faster: file your return electronically and as soon as possible.
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Nearly three-quarters of filers received a tax refund last year, with an average payment of about $2,800, the IRS said recently — a major cash influx for most households that depend on many Americans.
Tax returns may be weak for the 2021 reporting year due to changes brought about by the US bailout. (Stock)
The IRS is already warning of a “tough” tax season that promises to bring complications and potential delays for taxpayers. This is largely due to the deluge of unprocessed paper returns the agency is going through: As of the end of December, the IRS had 6 million unprocessed individual returns – a significant increase from its usual backlog of approximately 1 million unprocessed returns around the start of the tax season.
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There are steps taxpayers can take to get their money back faster. Experts have urged taxpayers to file their tax returns as soon as possible, noting that individuals do not need previous returns to submit their 2021 returns. Americans are encouraged to file electronically with direct deposit in order to avoid potential delays and receive their return within 21 days.
If you file electronically – as most taxpayers do – you can start tracking the status of your tax refund within 24 hours of filing using the Where’s My Tax Refund tool. ‘IRS.
However, for taxpayers who choose to file their returns by mail, there may be a wait of up to four weeks to retrieve your payment status from the site.
Yet many taxpayers end up waiting well over 21 days for their refunds – and this is often due to simple miscalculations on their tax returns or identity theft delays.
Eric Bronnenkant, tax manager at online financial adviser Betterment, said Americans should file as soon as they’re ready to avoid tax evasion because there’s a “huge problem” where fraudsters find someone’s social security number, illegally file a return on their behalf and request reimbursement.
“The best way to mitigate someone illegally filing a statement on your behalf is to file as soon as possible and get ahead of the game,” Bronnenkant said.
The IRS — and individual filers — face new challenges this year: Taxpayers will have to reflect the monthly child tax credit payments and stimulus checks they received in 2021 on their returns, which further complicates matters and increases the likelihood of errors and delays in processing returns.
“Anytime you get a tax credit, and you have to reconcile that when you file, you want to make sure you put the right number in when you file, otherwise it can delay your return and refund that you might otherwise have a right.” Bronnenkant said. “Knowing what payments you’ve received in advance and recording them appropriately will go a long way to reducing some friction when filing.”
Families who received monthly payments of the enhanced child tax credit last year will receive a letter – called Letter 6419 – from the IRS informing them of the total amount of the advance payment they received and the number of eligible children used to calculate the payments.
Since at least half of the enhanced credit will be paid out in a lump sum when parents receive their 2021 tax returns, recipients should save the letter and use it to accurately reconcile the credit they already have. received when filing their taxes this year. The information is relevant to determining how much extra money families receive from the credit when they complete Schedule 8812 and Form 1040.
“There are important steps people can take to avoid processing delays and get their tax refunds as quickly as possible,” IRS Commissioner Chuck Rettig told reporters last week. “We urge people to carefully check the accuracy of their taxes before filing. And they should do so electronically with direct deposit if possible; filing a paper tax return this year means a delay in refunds prolonged.”
If taxpayers file electronically without issue and choose to receive the refund by direct deposit, the IRS expects the money to arrive within 21 days.
Tax filing season will end on April 18 this year for most individuals, rather than the usual April 15 deadline, because that’s when Emancipation Day will be observed in Washington. , DC.
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