The IRS will begin accepting e-filed tax returns on Monday, January 23, 2017. You can get started now and be first in line for your tax refund: TurboTax will begin accepting e-filed returns starting Wednesday, January 4 and will securely hold them until the IRS opens.
Last year, about 75 percent of taxpayers received a tax refund that averaged about $2,800. We know that your tax refund can make a big difference in your financial life, whether you need to pay down debt or save for something special. Combined with e-filing, direct deposit is the fastest way to get your tax refund. Fifty-eight percent of taxpayers received their tax refunds via direct deposit last tax season. The IRS anticipates issuing more than nine out of 10 federal tax refunds in less than 21 days from acceptance.
A new law, the PATH Act of 2015, requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15. This applies to all tax preparation methods. According to the IRS, taxpayers who claim the EITC or ACTC will likely see refunds the week of February 27. The vast majority of taxpayers are not impacted by this change.
The IRS encourages all taxpayers to file as soon as possible and reminds you to keep copies of your prior-year tax returns for at least three years. This year, you will need your adjusted gross income (AGI) from your 2015 tax return instead of your Electronic Filing Pin in order to file electronically.
Check back with the TurboTax Blog this tax season to get the latest news for all things taxes and saving money. Check out our top 10 steps to take before 2016 ends to increase your refund in 2017!