Tax Preparation

Shopper Information: IRS Tax Season Deferral, ‘Free File’ On-line Tax Prep for Particular Revenue, California Second Worst State for Drivers

SAN FRANCISCO (KGO) – IRS Announces Start Date for Accepting Tax Returns for 2020

If it’s too early to think about your taxes, think again.

The Internal Revenue Service announced today the date on which the tax authorities “will begin accepting and processing annual tax returns for 2020”: Friday, February 12, 2021. This will allow taxpayers to begin filing their tax returns on paper and electronically .

The February 12 start date is a little later than usual to give the IRS time to program and test changes to tax law in 2020 – a year in which the Economic Impact Payments agency distributed processing to millions of Americans a massive backlog of late tax returns for 2019.

To this end, the IRS urges taxpayers to file their 2020 tax returns as soon as possible, electronically and with direct deposit instead of mailing a paper check for refunds. One of the biggest delays in processing returns in 2019 was due to IRS staff working from home due to the pandemic and paper returns remaining unopened until staff returned.

The deadline for the tax return for 2020 remains April 15, 2021.

The IRS free file is now open for free tax preparation

Taxpayers looking to take the plunge into preparing their tax returns can now use the Internal Revenue Service’s “Free File” system.

The IRS Free File System is a hub where tax preparation services can offer their free tools in partnership with the IRS and users can answer a few questions to find out which tool is right for them. Eligibility for the free software varies, but in general, those earning $ 72,000 or less per year can file their federal statements for free.

2020 tax returns are now ready and most tools will keep them until they can be presented to the IRS once it starts accepting tax returns on February 12, 2021.

This year it’s important to note that Free File can be used to apply for Recovery Rebate Credit – a tax credit for those who should have received an “Economic Impact Payment” but did not receive the full amount to which they were entitled.

To start using IRS Free File, visit the website by clicking here.

California is the second worst state to drive in, according to a report

If you thought your commute here in the Bay Area was a pain … you are absolutely right.

California ranks 49th out of all 50 states on WalletHub’s “Best and Worst Run-In States” list. The financial education and services company compared the 50 states using 31 key indicators of driving conditions, including vehicle maintenance costs, gasoline prices, rush hour congestion, and road conditions.

The “best” state to drive in is Texas, followed by Indiana and North Carolina. California is at the bottom of the list in 49th place, followed by Hawaii.

California had the highest percentage of rush hour traffic jams, ranking second for the state with the highest gasoline prices after Hawaii.

There are some bright spots, however: California was # 1 in the most auto repairs and car washes per capita.

Finally, WalletHub rated California the “best” when it came to having the fewest days without rainfall. The lack of rain certainly makes driving easier, but as residents know, little rain has its own serious drawbacks.

Check out more stories and videos from Michael Finney and 7 On Your Side.

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