20 Jan

IRS delays start of tax filing season

The Internal Revenue Service has delayed the start of the tax filing season to Friday, Feb. 12, 2021. The agency normally begins tax season in late January, however this year the IRS says it needs more time after Congress passed a second COVID relief package in late December 2020.

The IRS is still urging Americans to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups have started to accept tax returns, and the returns will be transmitted to the IRS starting February 12.

The IRS anticipates nine out of 10 taxpayers will receive their refunds within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically to avoid delays in processing, avoiding filing paper returns wherever possible.

More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15, deadline. For additional information about steps to speed up your tax refund during the pandemic, click here.

Source: Internal Revenue Service

31 Dec

Second round of Economic Impact Payments on the way

The Internal Revenue Service and Treasury Department have begun delivering a second round of Coronavirus relief Economic Impact Payments or stimulus checks. If you’re wondering when or if you’ll receive a payment, Navigator Credit Union has some helpful information.

When will I get my money?
Individuals who have their direct payment information on file with the IRS will see the payments first. The IRS and Treasury announced that stimulus payments started going out via direct deposit Dec. 29. The department says some may see the direct deposit payments as pending or as provisional payments before the official payment date of Jan. 4, 2021.

Paper checks were scheduled to begin being mailed Dec. 30. The IRS says paper checks or debit cards could be arriving in mailboxes as early as the first week of 2021.

The IRS is reminding taxpayers there is no action required by eligible individuals to receive this second relief payment.

You can check payment status and confirm payment type by visiting the IRS website and click Get My Payment.

How much money will I get?
The full amount of the stimulus payments and applicable income levels have yet to be defined. However, the recovery bill that President Trump signed currently includes direct payments up to $600 to eligible adults, plus $600 per dependent child.

Visit www.irs.gov/coronavirus for the latest information about the Economic Impact Payments, including answers to questions about eligibility and what to expect on payment timing and amounts.

Avoiding Coronavirus stimulus payment scams
Scammers are using stimulus payments to try to rip people off. They might try to get you to pay a fee in order to receive your stimulus payment. Or they might try to convince you to give them your Social Security number, bank account or government benefits debit card account number.

Here are four tips for avoiding a stimulus payment scam:

Only use irs.gov/coronavirus to submit information to the IRS – and never in response to a call, text or email.

The IRS won’t contact you by phone, email, text message or social media with information about your stimulus payment or to ask you for your Social Security number, bank account or government benefits debit card account number. Anyone who does is a scammer phishing for your information in order to commit fraud.

You don’t have to pay to get your stimulus money.

The IRS won’t tell you to deposit your stimulus check then send them money back because they paid you more than they owed you. That’s a fake check scam.

Navigator Credit Union’s Member Promise includes working in your best interest, helping you achieve financial success and protecting your privacy. We want to help make sure the Coronavirus relief payments benefit our Members and not scammers. If you remember these four things, you’ll cut scammers’ success rates. And, when you spot a scam, tell the FTC: ftc.gov/complaint. Together, we can help put a stop to these scams.