Delay of tax season
LEXINGTON, Ky. (WKYT) - The phrase “tax season” can inflict panic upon many. It was announced last week that the upcoming tax season has been delayed. Fiduciary retirement planning advisor Josh Smith of Strategic Wealth Designers joined us on air to explain. He shared that the start of tax season has been delayed to February 12th, compared to the usual late January start date.
“The start date of tax season has been pushed back a couple of weeks,” Smith says. “This is to allow the IRS to complete 2019 tax returns that have yet to be processed. Also, the IRS must adjust its programming in response to the December COVID-19 relief act that issued additional stimulus checks. If this change didn’t occur, there could be an even further delay in receiving refunds for 2020.”
The IRS is strongly encouraging filers to choose electronic filing rather than mailing in paper forms. They also are promoting choosing the option of direct deposit instead of receiving a check. This will ideally help reduce delays in receiving a refund, as IRS employees must follow any social distancing or stay at home orders that are in place.
“The news of the delay is a good reminder for viewers to begin preparing their tax information. It is much easier to manage the process when you begin early,” Smith says. “Gather your tax documents and ensure that enough taxes were withheld from your paychecks during the year in case you have to account for that in your budget. Check out changes for this year, like the Recovery Rebate Credit. We still have almost three months until your 2020 taxes must be filed, so start now.”
Even though the start date of tax season has been delayed, the deadline remains the same. Mark your calendars for April 15th, as this is still the last day to file your taxes for 2020. To see additional stories surrounding business and economic news for the Lexington area, visit https://WKYT.com/MoneyMatters and if you have a question for Josh send an email to firstname.lastname@example.org.
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