The IRS will begin accepting and processing 2020 tax year returns for individual filers on Friday, February 12, 2021. This start date will allow the IRS time to do additional programming and testing of its systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.
To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit. The IRS expects more than 150 million tax returns to be filed this year, with the vast majority before the Thursday, April 15 deadline.
Also, the IRS anticipates a first week of March refund for many Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) taxpayers if they file electronically with direct deposit. To avoid processing delays, the IRS urges taxpayers to avoid filing paper returns wherever possible, and check IRS.gov for the latest tax information. Finally, the IRS wants taxpayers to remember that advance stimulus payments received separately are not taxable and do not reduce the taxpayer’s refund when they file in 2021.