The IRS has announced (IR-2021-16) it will begin accepting and processing 2020 tax returns on February 12, explaining that a later start date gives the agency more time to program and test its systems following end-of-the year tax law changes that included a second round of economic impact payments.
Although tax seasons usually begin in late January, a February start date has occurred five times since 2007, the IRS states. The agency anticipates that nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. The IRS is statutorily barred from issuing refunds involving the earned income and additional child tax credits before mid-February, so many of those taxpayers will likely see refunds at about the same time as usual – the first week of March.
Tax refunds last year averaged more than $2,500, the IRS says, adding that over 150 million tax returns are expected to be filed this year.