ARIZONA, USA — If you're one of those people who typically wait until closer to the filing deadline to submit your taxes, you might want to think about getting started a little earlier this year.
The Internal Revenue Service is dealing with historic backlogs and that may mean delays in getting your refund.
Financial Advisor Dan Pallesen said don't wait to get started.
"If you're filing electronically, you shouldn't have as much of a delay as if you're sending through the mail," Pallesen said.
Take advantage of technology if you're hoping for a speedy return; file online.
The IRS cited staffing shortages amid the pandemic, but Pallesen said preparing and filing is still beneficial before the April 18 deadline and doing it with a professional is a plus.
"They're good at scanning the entire landscape and finding deductions and credits on your behalf," he added.
Keep in mind the standard deduction this year for a single filer is $12,550, and parents can capitalize on those child tax credits.
"You have probably gotten used to getting checks sent directly to you, those have stopped now in January, but you will essentially get the second half of your child tax credit when you file," Pallesen said.
If you've filed for unemployment, that income is taxable; plus, if you get paid through third-party apps, that needs to be included in your tax filing too.
"Regardless of how you do business, whether it's through PayPal or Venmo, you'll be receiving 1099Ks and K1s a little bit closer to the tax deadlines, so you won't see them until March or sometimes even April."
Finally, if you are owed a refund, the typical turnaround is roughly 21 days if you opt for direct deposit.
Taxes are due on April 18, and Treasury officials say there's no current plan to extend that deadline.
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