Americans are not confused this fiscal season.
In just one week since the opening of the February 12 tax filing period, the IRS has received nearly 35 million individual tax returns, according to data released by the agency on Thursday.
The rush of returns goes far beyond what the agency saw last year, just before the coronavirus pandemic hit and led to an extended deposition window. In the week ending Jan. 31, 2020 – the first of the 2019 fiscal season – the IRS received 15.7 million returns, he said.
Even as of February 7, 2020, at the end of the second week of the 2019 filing season, the IRS has received nearly 29 million individual tax returns, less than they received in just one week this year.
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There are several reasons why Americans can rush to file right now. First, the IRS pushed back the start of filing on Feb. 12, so it had time to prepare after sending out the second round of incentive payments.
Because the agency did not extend the April 15 application deadline – and said it did not intend to do so – people have less time to obtain the documents and any payments they owe the IRS.
Benefits of filing as soon as possible
Filing as soon as possible may have other benefits for Americans who have been most severely affected by the coronavirus pandemic.
People may run to hope that they will soon receive a refund, which for many is the biggest expectation they see all year. The quickest way to get any refund you have is to file your taxes as soon as possible, said Elaine Maag, senior research associate at the Urban-Brookings Fiscal Policy Center.
“Waiting has no benefit,” she said.
Filing a tax return is also the only way to receive money from Americans who did not receive incentive checks for which they were eligible or did not receive the correct amount.
If you had a decrease in income in 2020 or had a child, you may be able to make incentive payments that you did not qualify for based on your earnings in 2019. You may also be able to apply for tax credits to help you earn a living. it helps middle- and low-income Americans, such as the earned income tax credit and the child tax credit, which can be worth hundreds or thousands of dollars, depending on income and family size.
Submitting a statement is also one of the best ways to make sure the IRS has your current information and bank address, which can help you with any future incentive payments, Maag said.
Early filing can protect against fraud
Filing as soon as possible can help protect you from tax fraud, according to Kelley Long, a certified financial planner, CPA and member of the American Consumer Institute of Consumer Financial Education.
If someone steals your identity and files a tax return on your behalf to request a refund, you will have trouble sending your real information, she said. It is then your responsibility to prove to the IRS that the statement on your behalf was fraudulent and to provide them with the correct information.
Waiting has no benefit.
Elaine Maag
senior research associate at the Urban-Brookings Fiscal Policy Center.
The agency will investigate, which will delay you in getting the money you owe.
“You don’t want to worry about that extra step of proving that someone stole your identity,” Long said.
Tax returns can be amended if necessary
To be sure, as Congress continues to work to eliminate the coronavirus, there could be additional changes to the tax code that would impact the 2020 returns. But experts say that’s not a reason to delay filing your tax information. or at least to start the process of completing your statement, because it is not clear when another package will become law.
First of all, if you plan to work with a tax professional to file this year, they are probably slumped because of the shortened season, so it’s best to contact as soon as possible.
“I think it’s more prudent this year to put it all together,” said Anjali Jariwala, CFP, CPA and founder of FIT Advisors in Torrance, California.
If legislation is passed that will change your statement, you can file a later amended one, she said.
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