4 reasons you want to file your taxes as early as possible — starting Friday, Feb. 12February 10, 2021
You may have more than two months until yourare due, but we have four solid reasons why you should act sooner rather than later. For a start, your taxes carry a few additional burdens this year in addition to your if you get one — namely, .
The benefits of filing early apply to millions of people whoas part of the . Maybe the check didn’t arrive because of a . Some folks had problems with , missing money for in general or .
Our advice also applies to 8 million or morethis year to . And submitting taxes as soon as possible may also have an impact for tens of millions of people for a of up to — that than you think. We’ll explain what you need to know. In addition, here’s more information about , and when it’s time to or set up a . This story was updated with new information.
4 benefits of filing taxes early, other than your tax refund
Benefit 1: The earlier you file your taxes, the(you can ). That’s one great reason to file early every year — other than the stress of having your taxes hanging over your head.
Benefit 2: Since any missing stimulus check money is alsothis time around, filing early will mean you get any missing stimulus money faster, too. If you’re owed a tax refund and stimulus money, both will arrive as part of the same payment. For example, let’s say your tax refund was $500 and your stimulus check allotment was $500. You’d receive one $1,000 payment from the US Treasury.
(If you’re on the hook for taxes but you’re owed stimulus check money, the amount you have to fork over will be reduced. So, if you were to owe $1,000 in taxes and you’re missing $500 in stimulus check money, you’d owe $500 instead of $1,000.)
Benefit 3: The chance to, or fix any errors. People with direct deposit accounts on file with the IRS have typically than those getting money in the mail. We suspect the same will be true with the of (read about why the )
Benefit 4: You’ll stand a better chance of getting your full payment with the new stimulus check in 2021. According to the latest proposal (PDF) — which is not law — the IRS would base your on your 2019 or 2020 taxes, whichever they have most recently on record. Any money you don’t get as part of the automatic payment you’d have to claim a year from now on your 2021taxes.
So let’s say you made less money in 2020 than in 2019, or you had a new baby in the last year, if theon your 2019 life circumstances, you’d miss out on the rest of the check for a year or more, by the time it’s processed.
Key dates: When you could get the missing stimulus money and your tax refund
Though you can still technically file your taxes by mail and request a paper check, the fastest way to get the money you’re owed is to file electronically and have funds. This year, the IRS won’t begin processing tax returns , making that the soonest you can submit your own (April 15 is the last day to file). The IRS says 90% of filers will receive their refunds in 21 days or sooner.
The IRS says itswithin 24 hours of filing, which could include a confirmation that your refund has been issued. From there, it could take anywhere from one to three days for the money to appear in your bank account.
When to expect your tax refund
|If you file on this date||This is the soonest||This is the latest|
|Feb 12||Feb 19||Mar 5|
|Mar 1||Mar 8||Mar 22|
|Apr 1||Apr8||Apr 22|
|Apr 15 (last day to file)||Apr 22||May 6|
|Oct 15 (last day with extension)||Oct 22||Nov 5|
Assuming seven days is the soonest you’d get your combined tax/stimulus refund and 21 days is the longest, we’ve sketched out what a difference filing sooner rather than later could make. (There’s more below on how to calculate how much money you might get in addition to your.)
How do you know if the IRS owes you stimulus money?
To figure out whether and how much money you’re owed from a previous round of stimulus checks, first you have to determine how much you were owed for each previous payment, then subtract from that any amount you already received.
Here’s how to calculate the payments you were owed:
Next, you’ll want to check your bank account where your payments were deposited to determine the amount you received. (If you received an balance and transaction history here.) within 15 days of issuing your stimulus check, however it was issued, and that letter should indicate how much money you received. (Here’s what to do .), you can check the
If you no longer have that letter, you canto help you figure out when you received the payment. It’ll also show you the last four digits of the bank account it was deposited in if it was deposited directly.
There’s also a form to help you figure out the amount you’re owed on page 59 of this PDF detailing instructions for 1040 and 1040-SR tax forms, but it’s a doozy to follow.
Why the IRS could owe you a payment from one or both rounds
There are all kinds of reasons why the IRS might still owe you stimulus check money, including:
Claim your missing stimulus check money on your taxes
The IRS requires you to fill out either form 1040 or 1040-SR if you’re going to claim a on your 2020 taxes. Once you have the amount you’re owed worked out, you’ll enter it on line 30 of either of those forms (see screenshot). Yes, it’s that simple.
How you’ll receive your missing stimulus money
If you’re due a refund from the IRS, it’ll include both your full refund amount and whatever you’re owed from the. In other words, it’ll be bigger. If, however, you owe the IRS money, your Recovery Rebate Credit will be applied to the debt. If the tax credit is more than you owe, you’ll receive the difference as a refund.
Here’s, i.e. you won’t be filing taxes for 2020, and you’re still owed a stimulus check. If you have child dependents, could help put more money in your pocket. And here’s .