Disclaimer: ClearOne Advantage does not offer tax advice. Please consult with your accountant or tax professional for advice regarding your specific tax situation.
If you want to receive your tax refund as soon as possible, file your tax return at the first available opportunity. This year, that opportunity comes about later than usual.
COVID-19 has thrown a wrench into the works at the IRS. In December, as lawmakers hammered out the legal framework of the second round of stimulus checks and other benefits, they included some tax law changes. Due to these changes, the IRS needs additional time to iron out its tax preparation and filing systems. The delay means that you can file your taxes on February 12, 2021, at the earliest.
To speed up your tax processing/tax refund, you should use one of the e-filing options the IRS has made available and the direct deposit payment option. In these pandemic-ridden times, it makes sense to manage your finances online. In addition to the potential health risks, paper returns and checks limit the speed of the process to that of snail-mail.
The e-filing options the IRS has made available are:
These tax filing practices represent a departure from the IRS’ usual MO, but extraordinary years call for extraordinary measures, and 2020 was indeed such a year.
The tax deadline for 2021 is April 15. Last year, in light of the special circumstances, the IRS extended the tax deadline for 2020 to July 15. There are no similar measures projected for this year, although that might change as the filing/payment deadline approaches.
If you do not want to accrue tax debt, you should make sure that you have filed and paid your taxes in full by April 15, 2021. To get your tax refund earlier, complete your tax filing by February 12.
Following your successful tax filing, it should not take the IRS longer than three weeks to send you your federal tax refund. The Internal Revenue Service has always been keen on timely refunds, and there are no reasons why it should depart from its practices this year.
Going into tax debt is not an option. The IRS will collect what you owe, although it is possible to gain tax debt relief and even bargain with the IRS.
If you cannot afford to pay off your entire tax bill, do not panic.
What should you do if you have paid your taxes with a credit card and have accrued too much credit card debt to handle? ClearOne Advantage Certified Debt Specialists can help you explore your debt settlement options. Call 866-481-1597 to speak with one of our Debt Specialists today about your particular situation and get a free savings estimate.