While millions of people are still struggling with their federal income tax records and haven’t even made an appointment with their accountant, millions more have already filed their tax returns and are waiting to see what happens next. After filing their tax returns, many taxpayers check with their tax professionals or on the IRS website for the status of their tax returns. It is common to receive a notification that a tax return has been accepted. However, despite this communication, there is often little other follow-up. Users typically don’t receive a refund immediately after receiving this notification (if a refund is due) or another indication of what the IRS will do with the return. If dealing with your tax return is already increasing your anxiety, sitting idle after accepting your tax return can be downright stressful, especially if you don’t know what that means in the first place. My tax return has been accepted; what now? Read on to find out what to expect.
What does “Accepted” mean?
If you get a notification that your tax return has been accepted – whether from your tax advisor, the software you used to file your own tax return, or by checking the IRS website – this is good, if incomplete, news. A return that has been “accepted” means that it has passed an initial screening that includes some very rudimentary checks. This could be because no one has submitted a re-registration to your social security number or because no other red flags have caused it to be rejected. Once your return has been “accepted”, its status will remain unchanged until it has been “approved”. This indicates that it has been processed and that the IRS has approved your refund.
Monitor your tax return status
Once you know your return has been accepted, all you have to do is wait. According to the IRS, it takes the agency 21 days or less to process most tax returns. However, there are cases where the agency may need more time to process a custom return. For example, tax returns that contain numerous errors or are incomplete can take longer to process. If the IRS suspects you were a victim of identity theft, or if you applied for an Earned Income Tax Credit or an Additional Child Tax Credit, the application may take longer to process. If you are expecting a refund, there is a place on the internet to track the status of your return. The “Where is my refund?” Feature The IRS shows you when to expect your refund.
Pay your tax bill
While millions of Americans receive refunds every year, millions don’t. This applies in particular to companies as well as to people who are self-employed and do not pay withholding taxes. These people often underestimate the amount of taxes they owe or choose to not pay them until the end of the year and then get a heavy tax burden when the tax filing deadline expires. Failure to file or pay your taxes in a timely manner could result in fines and additional scrutiny from the IRS. So make sure you get this check in the mail as soon as possible after you’ve submitted your taxes. This year, the deadline for filing your income taxes with the federal government is April 15th. However, there is talk of extending this date into the summer as some states are already extending it. So keep an eye out for all the news related to income tax filing as April approaches.
Organize your tax documents
Once you’ve submitted your return and waiting for the IRS to process it, you should organize all of your tax records so that you can easily access them later. You may need it if you are being screened or if the IRS has questions or problems regarding your return. You may also need your tax return for other purposes, such as: B. When applying for a mortgage or other type of significant loan. While paper copies of your return are great, it also makes sense to digitize your return and keep it handy on a computer or hard drive. Your tax preparation specialist may be able to help you make a digital copy.
Make a plan for your refund
If you are expecting a refund this year, plan how to best take advantage of it. Given the economic impact of the COVID-19 pandemic across the country, take the time to figure out how best to use this refund to stay in solid financial shape for the remainder of 2021 with improvements due to cash problems. Getting your home back in tip top shape can be a great way to put your refund into action. Paying back your credit card or other balance is another great choice to spend your refund on. Finally, it can make sense to set up an emergency fund to be prepared for unexpected expenses that may spike later in the year.
My tax return has been accepted. So am i finished?
What you do after filing your taxes is almost as important as any preparation you make to be ready for tax day. So don’t rest on your laurels after filing your taxes this year. Instead, focus on the status of your return and be ready to make good use of it for the rest of 2021.