Tax filing season is upon us and for many, this means turning in their returns to quickly receive a due refund. Although there have been some changes to the traditional filing limitations, specifically the standard deduction, these have now been in place for a while, and barring any immediate changes, individuals who received a refund can typically expect to get a similar amount as last year from their return.However, if withholdings have been updated or filers are subject to any event which could have an impact on their return, then the results may differ.
There areÂ different taxable eventsÂ but if this past year was similar to the one prior then expectations are a similar return can be expected. If you have paid the same amount of money throughout the year and a refund was generated last year, then a similar amount can be anticipated for a comparable return. For many who are in this situation, filing as soon as the Internal Revenue Service (IRS) begins accepting returns is common practice to quickly receive money owed. However, this year for individuals who have certain tax credits, refunds are being delayed until at least February 22, no matter the original submission date.
Taxes must be filed before the April 15 deadline unless an extension is submitted but for those anticipating a sizable refund, they typically file much sooner. Returns began to be received during the last week of January but those who have both Earned Income Tax Credits (EITC) and Additional Child Tax Credit (ACTC) can expect a delay on their money.
The EITC applies to low or moderate-income families, particularly those who have children. Used to help balance the impact of taxes on income generated throughout the year, this helps to offset an individualâ€™s earnings. However, if someone qualifies, then their refund is delayed by law and not issued by the IRS until later on in the tax season.
Likewise, those who qualify for the ACTC are facing a similar delay. The ACTC applies to filers who have children under the age of 17 and is a credit applied for every child on the return. ThisÂ 2020 tax creditÂ is available to individuals or married couples but refunds for this particular incentive are also being delayed. Expectations are both will begin to be distributed during the last week of February, regardless of how early any filings were submitted.Â
Once youâ€™re ready to file a return or if you need help determining exactly which status to select, or have any other tax-related questions, then let the tax professionals atÂ Bloch Rothman and AssociatesÂ assist you today. In addition to providing answers to your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top-quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have.
Â Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history of helping clients with any of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, donâ€™t hesitate toÂ contact usÂ today. Available for all of your tax needs, there are also several bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!