During the 2020 tax season, the IRS issued more than $300 billion in tax refunds averaging $2,535 per return. Generally, you can expect to receive your tax refund less than 21 days after filing electronically. But if you file a paper tax return, expect delays.
The IRS said that so far in the first eight days of the 2021 filing season, the agency is averaging issuing 2.072 million refunds per day.
The IRS will begin accepting and processing 2020 tax year returns on Friday, February 12, 2021. By law, the IRS cannot issue refunds before mid-February for tax returns that claim the earned income tax credit or ACTC. The IRS must hold the entire refund — even the portion not associated with EITC or ACTC.
By law, the IRS cannot issue tax refunds to those filing the Earned Income Tax Credit until Feb. 15. But if the processing begins on Feb. People can still prepare and file returns electronically but the IRS isn’t going to move the returns through the system until much later than usual.
The IRS is accepting 2020 tax returns starting February 12, 2021. The Internal Revenue Service says taxpayers should expect limited face-to-face operations, heavy call volume and paper-processing delays as it opens today for tax season 2021, accepting tax returns for tax year 2020.
People can now file their 2020 taxes, but it will be weeks before refund money hits many bank accounts. It will be the first week of March when the IRS starts releasing refunds on returns claiming these credits, the Earned Income Tax Credit and the Additional Child Tax Credit.
That’s why some people like to file their return as early as possible. But this year, the IRS won’t start accepting 2020 tax returns until February 12, 2021.
The IRS and Treasury anticipate getting out all of the automatic payments, including checks, before the end of January. However, this might not happen in all cases. Technically speaking, the stimulus payments are an advance on the Recovery Rebate Credit, which will be included on the 2020 Form 1040.
This means the IRS has processed your return and has approved your refund. The IRS is now preparing to send your refund to your bank or directly to you in the mail if you requested a paper check.
What does the status “ Your Tax Return Has Been Received and Is Being Processed ” means? This means that your tax return is received by the IRs and it’s in the process. It will show you the refund date only when the refund has been approved and the IRS has finished processing it.
Typically, the IRS issues a refund within 21 days of “accepting” a tax return. If you file electronically, the IRS can take up to three days to accept your return. If you mail in your return, it can take three additional weeks (the IRS has to manually enter your return into the system first).
If the IRS doesn’t think you’re eligible to claim the EITC, ACTC, advanced payments of the premium tax credit, or American Opportunity Tax Credit, based on its return screening filters, the IRS can delay your refund and ask for more information.
When to Expect Your Refund Refunds are generally issued within 21 days of when you electronically filed your tax return or 42 days of when you filed paper returns. If it’s been longer, find out why your refund may be delayed or may not be the amount you expected.