2021 Tax Refund Calendar: When Your Tax Refund Will Arrive

If you are a tax professional, we know you’re always looking for the most effective ways to serve your clients. That’s why we’ve provided this projected 2021 IRS tax refund calendar and accompanying article so you can quickly answer your clients’ questions, including:

• When will I receive my tax refund?
• How can I track the status of my tax return?
• How will EITC and ACTC tax credits affect when I receive my refund?
• Am I eligible for an economic recovery rebate credit?
• Will COVID-19 delay my tax refund?
• and more!

The table below shows a tax refund calendar with the projected dates your clients should receive their tax refund by either direct deposit or check. Our tax refund calendar relies on guidance issued by the IRS and historical trends and is updated as the IRS provides new information.

¹ Note that during the peak of tax filing season (beginning around late March through April 15), it may take slightly longer for the IRS to process tax returns. The IRS still plans to send the vast majority of tax refunds within three weeks of processing the tax return.

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To help taxpayers see their federal tax return status and track their refund, the IRS has a free Where’s My Refund? tool available on the IRS website and the IRS’ IRS2Go mobile app, available on iOS and Android devices. Taxpayers should be able to see their tax return status within 24 hours after filing their tax return electronically or within four weeks of sending their tax return by mail.

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Earned Income Tax Credit (EITC) & Additional Child Tax Credit (ACTC)

In accordance with the PATH Act, taxpayers whose tax returns include an Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) cannot receive their federal tax refunds before February 15, regardless of how early they file their tax return with the IRS.

This year, most taxpayers with EITC and/or ACTC credits who file during the first week of tax season should expect to receive their refund during the first week of March (likely March 5). However, this only applies to taxpayers who file their tax return electronically, chose to receive their refund by direct deposit, and the IRS finds no other issues with their tax return. The IRS noted this would be the same experience for taxpayers if the filing season opened in late January.

If the taxpayer does not file their tax return early and they have EITC or ACTC credits, their tax refund may be delayed 2–3 weeks longer due to the law requiring the IRS to verify taxpayers’ qualifications for these credits. For example, if they filed their tax return within the week of March 7–March 13, although the chart gives an expected return date of March 26, their tax refund may not arrive until April 9.

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For the 2021 tax season, the IRS has noted these new key items for taxpayers to consider involving credits, deductions, and refunds:

Economic Impact Payment/Recovery Rebate Credit

Taxpayers who received an Economic Impact Payment (stimulus payment) should keep their 2020 Economic Impact Payment Notice 1444 with their 2020 tax records. Even if they received their Economic Impact Payment by direct deposit, the IRS would have mailed their Notice 1444 record within 15 days of the payment going out.

To be eligible to claim the Recovery Rebate Credit on their 2020 federal income tax return, taxpayers must have either 1) not received an Economic Impact Payment; or 2) received an Economic Impact Payment of less than $1,200 ($2,400 if married filing jointly).

Interest on Refunds Taxable

Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable, and taxpayers must report them on federal income tax returns. In January 2021, the IRS sent Form 1099-INT to anyone who received interest totaling $10 or more.

Charitable Deduction Changes

New for the 2021 tax season, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying charity organizations. For more information about charitable deductions, taxpayers can refer to the IRS resource Publication 526, Charitable Contributions.

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Due to the February 2021 winter storms, the deadline for residents of Texas to file various individual and business tax returns and make tax payments has been extended to June 15, 2021. Individuals and households affected by severe winter storms that reside or have a business in all 254 Texas counties qualify for tax relief.

Taxpayers in other states impacted by these winter storms that receive similar FEMA disaster declarations will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on the IRS website.

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WebCE wants tax professionals and taxpayers to have the most up-to-date information during tax season. Tax professionals are encouraged to order tax continuing professional education (CPE) courses so you’ll be completely prepared for the 2021 tax season and able to help your clients to the best of your ability.