January 27 marks when the IRS will start processing tax returns for the 2024 filing season. The IRS opened up it’s free filing for individuals part of their website January 10, but you have to remember anything filed before January 27 will remain in a holding pattern until filing season officially opens. The time frame of 21 calendar days will start from the 27th so calling the IRS asking about your refund before the 21 days elapsed will only get a response from the IRS representative to allow the full time frame. If your return was accepted before the 27th , it is important to keep in mind that time doesn’t count.
2024 Tax Filing: What You Need to Know
The IRS & software providers test the electronic filing system by opening electronic filing earlier, but they can’t process the returns until the official date. The IRS has been updating its systems for weeks now to get ready for 2024 returns for this year’s tax filing season. Behind the scenes the IRS took some command codes offline in order to update them in preparation. Internal revenue manuals were updated, a constant process, to adapt to new procedures and laws. And some things IRS just can’t do before these updates are finished, such as taking a tax return that was assumed to be fraudulent and bringing it back to life, until these updates are completed.
Filing Your Taxes: Electronic vs. Paper
If you mailed in a return allow six weeks from when you mailed it or from the 27th whichever is longer. I would recommend filing electronically if you can. Filing on paper can lead to problems like forms not entered correctly or some things just going missing. Electronic filing will catch common math errors like incorrect SSNs or just claiming something you are blatantly not qualified for.
The IRS also is doing some things differently like handling the duplicate claiming of a dependent. If a dependent received an identity protection pin or IP PIN, then you will need it. Some filed Form 15227 to request they are enrolled into the IP PIN program but that form takes up to 640 days to process so you may not receive it this year. But the IRS will now accept a tax return even if the dependent was claimed on a previously filed tax return if the primary taxpayer on the second return includes a valid IP PIN in order to speed up the filing of returns and issuance of refunds. Prior to this, the IRS would require that a paper return be filed on the second return.
You want to be on guard for claiming things that you are qualified for as well. Every year these social media schemes and shady preparers give the promise of large refunds and this can cause big delays. Did you really think you qualified for the fuel tax credit, sick and family leave, or need to file Schedule H? Maybe you do or maybe you being beguiled to claim something that will only delay you refund or send your return to exam. Furthermore, you want to avoid any frivolous filing issues like this and others which could delay your refund by 180 days or longer or have you incurring big penalties.
Stimulus Checks and the Recovery Rebate Credit
Another thing the IRS just announced was they would be sending out the third stimulus payment to those taxpayers who never got and filed a 2021 tax return. Did you even file a 2021 return? If you did file a 2021 return if you never got the third stimulus of $1,400 per person on the return you should have claimed the Recovery Rebate Credit on your 2021 return.
If you did claim the Recovery Rebate Credit and you already received the correct amount of the third stimulus payment, the IRS computer would just remove it and send you a math error notice telling you why. But if you’re not sure then look at your return for 2021.
Also do you remember getting the $1,400 payment at all? You could sign into your IRS online account and look at an account transcript for 2021 to check. You could order one by mail through the website too. Or you could call 1-800-829-1040 and just ask.
If you never filed a 2021 return and never got the third stimulus I would still check to see if one was ever sent to you since you want any sent and unreceived stimulus payment to be traced. The IRS could input a trace, they will probably ask you to submit a 3911 form that you would sign since the payment would be over a year old, and at that point they want a physically signed form.
Remember, for the Recovery Rebate Credit if you never filed a 2021 return and were never issued the third stimulus you have only three years to claim any refundable credit. You would have to be qualified for the credit such as you weren’t a dependent of someone else, have an SSN, and you were a citizen of the USA. That’s why time is of the essence here. Keep in mind, the IRS is sending out unclaimed credits for qualified taxpayers who didn’t claim it and never got the stimulus. But they file a return for you if you never filed a 2021 return.
Good luck to you and I wish you success in the great refund race of 2024 kicking off January 27 for this tax filing season!
