Americans are not debuting this fiscal season.
In just one week since the tax filing period opened on Feb. 12, the IRS received about 35 million individual tax returns, according to data released by the agency on Thursday.
The influx of returns far exceeds what the agency saw last year, even before the coronavirus pandemic arrived and resulted in an enlarged archive window. By the week ended Jan. 31, 2020, the first of the 2019 fiscal season, the IRS had received 15.7 million returns, he said.
As of Feb. 7, 2020, the end of the second week of the 2019 filing season, the IRS had received nearly 29 million individual tax returns, less than they had received in just one week. this year.
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There are a few reasons why Americans may be in a hurry to show up right now. First, the IRS delayed the start of filing to Feb. 12, so it had time to prepare after sending out the second round of stimulus payments.
Since the agency has not extended the April 15 filing deadline and said it has no plans to do so, people have less time to get their paperwork and payments due to the IRS.
Advantages of submitting it as soon as possible
Filing as soon as possible may have other benefits for Americans most affected by the coronavirus pandemic.
People may be rushing to show up in the hopes that they will soon get a refund, which for many is the highest performance they see all year. The fastest way to get any refund you owe is to file your taxes as soon as possible, said Elaine Maag, a senior associate researcher at the Urban-Brookings Center for Fiscal Policy.
“There’s no profit waiting,” he said.
Filing a tax return is also the only way to receive money from Americans who did not receive incentive checks to which they were eligible or who did not receive the correct amount.
If you have a drop in income in 2020 or have a child, you may be able to make incentive payments for which you did not qualify based on earnings in 2019. You may also be able to claim tax credits to help Americans middle and low income, such as the earned income tax credit and the child tax credit, which can be worth hundreds or thousands of dollars, depending on the income and size of the family.
Filing a statement is also one of the best ways to make sure the IRS has your current bank information and address, which could help you in future stimulus payments, Maag said.
Early filing can protect you from fraud
Filing as soon as possible can also help protect you from tax fraud, according to Kelley Long, a certified financial planner, CPA and member of the American Institute of Consumer Financial Advocates. of CPA.
If someone has stolen your identity and filed a tax return on your behalf to request a refund, you will have trouble sending your actual information, he said. It is then your responsibility to prove to the IRS that the statement filed on your behalf was fraudulent and to provide them with the correct information.
There is no advantage in waiting.
Elaine Maag
principal associate researcher at the Urban-Brookings Fiscal Policy Center.
The agency will investigate, which will delay obtaining the money owed to it.
“You don’t want to worry about this extra step of proving that someone stole your identity,” Long said.
Tax returns can be modified if necessary
Certainly, as Congress continues to work on coronavirus relief, there could be additional changes to the tax code that would affect the 2020 returns. But experts say it’s not a reason to delay filing your tax information. or at least start the process of filling out the declaration, as it is not clear when another package will become law.
On the one hand, if you plan to collaborate with a tax professional this year, they are likely to look resounding due to the shorter season, so it’s best to contact them as soon as possible.
“I think this year it’s more prudent for everything to be located,” said Anjali Jariwala, CFP, CPA and founder of FIT Advisors in Torrance, California.
If legislation is passed that will change your statement, you can always file an amendment later, he said.
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