Next Friday the Internal Revenue Service (IRS) began to accept the statements corresponding to the income of 2020, in a new tax season that It will run until April 15th. To process and expedite the sending of refunds to eligible taxpayers, the agency outlined the key points to consider before filing the return. Here we explain some of them.
Choose an e-file and request a direct deposit
The IRS explained that it expects to receive more than 160 million tax returns this year, most in electronic form. Please note that you can submit these electronically with the free tool Free file available on the IRS website. Here you will find it. You can file your return on paper and request your possible refund via physical check, but keep in mind that those alternatives may take longer this year, the IRS said.
“The pandemic brought about a variety of changes in tax laws and some unique circumstances for this tax season,” said Commissioner Chuck Rettig. “To avoid problems, the IRS is urging taxpayers to take some simple steps to ensure they get their refunds as soon as possible, starting with electronic filing and direct deposit,” he stressed.
Collect the most important documents, these are:
There are several forms and documents you should have on hand, as the IRS has explained that this can help you figure out which deductions and credits you may be eligible for. You must have the W-2 form (s) from your employer (s) with you. It is also important that you have 1099 forms, if necessary, including, but not limited to, proof of any miscellaneous income.
If you haven’t received them, you should check with your employer from the person or entity that made the payments. Another important form is the 1095-A, which shows your health coverage through the health market.
It is important that you read the stimulus check message
And this year, it’s vital that you check IRS Notice 1444, since that letter states whether you received a stimulus check for the pandemic (or the payment for the economic impact). There are people who have received that letter but not the support check, so it’s important that they have it with them as it will help you determine the amount to ask for as a ‘chargeback credit’.
Take a look at the changes brought about by the pandemic, we explain some of them
Due to the consequences of the pandemic, there are exceptions to some credits that could lead to relief this year. This is the case, for example, with the Earned Income Tax Credit or EITC by the acronym in English, for people with low or moderate income.
This is because the latest virus support package – the COVID-related Tax Relief Act of 2020 approved in December – authorized taxpayers to use their income for 2019 to calculate their employed person’s tax credit if that income was higher than 2020. This is because, for example, if you lose your job in 2020, unemployment benefits are not considered a labor income and can have an impact on your creditworthiness.
On the other hand, it is important that those who received unemployment benefits keep in mind that they should include it on their tax return.
How to check the status of your refund
The IRS said most repayments are made in less than 21 days, although some can take longer. To check the status of your refund, the IRS has the Where’s My Refund? Tool. on their website or in the IRS2Go mobile app.
In the case of the status of the Earned Income Credit or EITC, they will be able to see it from February 22, added the
agency.
