Tax filing season is officially underway for the year 2021, and some people have already jumped at the chance to get it done.
"As soon as they get them they want their refund so they're right on top of that," said Paul Jauch of Pinnacle Tax and Accounting in Wausau.
The start of this year's season coming as the Internal Revenue Service says they still have some catching up to do from the previous year.
"The pandemic has created unprecedented demands on the limited IRS resources and unfortunately we are still processing tax returns and amended returns from last year," said Chuck Rettig, the Commissioner of the IRS.
Even if you are one of the millions still waiting for your 2020 refund, you shouldn't delay filing your return for last year.
"We urge people to carefully file an accurate return using E-file with a request that we direct deposit your refund," Rettig said.
There are a few changes on what is and is not taxable this year.
For instance, if you received unemployment payments at any point during the year, the provision that existed before has changed.
"If you received unemployment in 2021 it is taxable on federal and the state return," Jauch said.
Both stimulus checks from 2021 are not taxable, nor are the advance child tax payments that began last summer.
"We need to know about it, but it's not taxable income," Jauch added.
As for refunds, the average increased by about $300 from 2019 to 2020, with experts anticipating continued growth for this filing season, especially for families.
"A lot of people didn't receive the advances for new kids that were born last year, they're going to see higher refunds. They didn't get the stimulus payment last year for new children born in 2021," Jauch said.
The deadline to get your taxes in or request an extension is April 18; April 15 coincides with a holiday in Washington, D.C.
