•Feb 12. The start of 2021 tax season. The IRS will be accepting and processing individual tax returns.
Feb 22. An arranged date for the IRS.gov/refunds Where’s My Refund tool being updated for those who claim EITC and ACTC (PATH Act returns).
First week of March. The tax refunds for those who claimed EITC and ACTC (PATH Act returns) electronically and don’t have issues, will begin to arrive.
April 15. The deadline for 2020 tax returns filing.
October 15. The deadline for the requests to extend the 2020 tax returns filing.
More than 20 million American taxpayers spent at least an estimated half a billion dollars in 2017 on financial products that are based on their anticipated tax refund, according to the National Consumer Law Center. Tax-time financial products, typically offered by banks and made available by providers of tax preparation services, include refund advances and refund anticipation loans (credit products) and refund transfers (deposit product). In fiscal year 2017, the Internal Revenue Service (IRS) processed more than 150 million individual federal income tax returns, and issued almost 120 million refunds totaling almost $383 billion, according to IRS.
Trends in the market for tax-time financial products since 2012 include
• the decline of refund anticipation loans (short-term loans subject to finance charges and fees),
• the rise in use of refund transfers (temporary bank accounts in which to receive funds), and
• the introduction of refund advances (loans with no fees or finance charges).
More recent product developments include increased online access to products for self-filers, higher refund advance amounts, the introduction of new products, and for tax year 2019, the reintroduction of fee-based loans. Specifically, taxpayers who made less than $40,000 were significantly more likely to use the products than those who made more. African-American households were 36 percent more likely to use the products than white households. Product users tend to have immediate cash needs, according to studies Government Accountability Office. For these users, tax-time financial products generally provide easier access to cash and more cash at a lower cost than alternatives such as payday, pawnshop, or car title loans.
MKG Tax Consultants provides Tax Refund Financial Products to customers with limited access to consumer credit from banks, thrifts, credit cards, and lenders determined by their tax refund status instead of their FICO score as a bank product or RAC refund Anticipation Check to the under bank by providing no upfront tax preparation fee’s and consumer loan products.
The Earned Income Tax Credit (EIC or EITC) is a refundable tax credit for low- and moderate-income workers. The amount depends on income and number of children. People without kids can qualify. For the 2019 tax year, the earned income credit ranges from $529 to $6,557. For 2020, it’s $538 to $6,660.
If you fall within the guidelines for the credit, be sure to claim it on your return when you do your taxes And if you didn’t claim the earned income credit when you filed your taxes in the last three years but you think you qualified for it, MKG Tax Consultants encourages you file an amendment so you can get that money back.
EITC Requirements, Qualifications
It is estimated that 1 out of 5 people who qualify for the EITC don’t claim it on their tax returns. Those people most in danger of missing out on their Earned Income Tax Credit include:
- people living in rural areas
- grandparents raising their grandchildren
- recently divorced
- recently unemployed
- taxpayers with no children
- recipients of disability benefits
Qualifying Children Claimed
|Single, Head of Household, or Widowed
|Married Filing Jointly
Investment Income Limit
Investment income must be $3,600 or less for the year.
Maximum Credit Amounts
The maximum amount of credit for Tax Year 2019 is:
- $6,557 with three or more qualifying children
- $5,828 with two qualifying children
- $3,526 with one qualifying child
- $529 with no qualifying children