Why hasn’t the IRS processed my 2020 return yet?

The vast majority of taxpayers will file their returns and get their refunds with no issues at all. The IRS says it is expecting more than 160 million individual tax returns for the 2021 tax year. But by sheer numbers, millions of folks are stuck in a cycle of confusion and backlogs. One Virginia couple has been waiting to get their refund since they filed electronically last May. “We have been told squat about why 21 days has turned into 270 plus days and counting,” Michael Hobbs said. “Some helpful souls have suggested that we send the IRS a letter, or call them on the telephone. Surely they jest!” The IRS is dealing with a cornucopia of issues contributing to a massive backlog going into this year’s tax season: Pandemic-related staffing shortages dating to office closures in 2020. Budget cuts . And outdated IT systems. Of course, knowing the why doesn’t help those waiting for their returns to be processed. Even tax professionals are complaining about their inability to help their clients, because they also are having trouble getting through to the IRS. — As of Dec. 31, there was a backlog of 6 million returns. — As of Jan. 8, the IRS had 2.3 million unprocessed 1040-X forms. If you filed an amended return, the agency says not to file a new tax return or contact the IRS about the status of your amended one. Instead, go to irs.gov and check Where’s My Amended Return? — As of Jan. 26, the IRS had 1.1 million unprocessed Form 941s, which employers use to report income taxes, Social Security tax or Medicare tax withheld from employee paychecks. — As of late December, the IRS had a backlog of about 5 million pieces of taxpayer correspondence, according to an annual report to Congress by National Taxpayer Advocate Erin M. Collins.

Should I even bother calling the IRS if I have a question or problem?

If you need help, yes, call the IRS. But it’s very likely that the endeavor will result in a long wait or probably a hang-up after an automated voice thanks you for your patience. “Our individual phone assisters, the IRS employees, are working hard but continue to receive millions of more calls than we can handle with our current staff and given the impacts of covid on the call centers,” IRS Commissioner Chuck Rettig said during a press call last month. As bad as phone assistance was last year, it’s likely to be even worse this tax season as people seek guidance on advance child tax credit payments, the third stimulus payment , unprocessed returns, refund claims and other unresolved 2020 return issues. How bad are things? During fiscal 2021, the IRS received a record 282 million calls, but only 32 million of those calls were answered, Collins pointed out. Collins said IRS workers are so busy answering the phones that they can’t adequately address the paper backlog, and processing returns is delayed as a result. Some tax professionals are so desperate to get through to the IRS that they are paying companies to wait in the phone line for them. The companies use automated technology to continually dial IRS phone lines. “One firm charges up to $1,000 per month for this service,” Collins said. “It’s a bad look for the IRS and unfair to taxpayers when some can essentially pay to cut to the front of the line and receive services that should be equally available to all.”

When is the best time to call the IRS?

The IRS says phone service wait times are longer on Mondays and Tuesdays, on Presidents’ Day (Feb. 21 this year), weekends and around the April filing deadline. “So, if you need to reach the IRS, call Wednesday through Friday, and bring lots of patience,” Collins said. Many readers have said they’ve had better results reaching the IRS early in the morning, starting at 7 a.m. Eastern time.

Should I still file my 2021 return, even though the IRS hasn’t processed my 2020 return?

If you have all the documents you need, yes, you should go ahead and file. And if you can, file electronically. Most importantly, this is the year to triple-check everything. You want to avoid anything that will require a manual review of your return.

What should I do if I want to file my 2021 return electronically but the IRS hasn’t processed my previous return?

When you file electronically, one of the verification questions asks for your adjusted gross income, or AGI, from the previous year. Because the IRS is still processing millions of federal returns, many people are unsure what to put down for their AGI. If your 2020 tax return has not yet been processed, enter $0 (zero dollars) for your prior-year AGI, the IRS says. If you used the non-filers tool last year to register for an advance child tax credit payment or the third stimulus payment, enter $1 as your prior-year AGI.

When can I expect my refund?

There are three steps you can take to help ensure you get your refund without delay, Rettig said: File electronically, file accurately, and request a direct deposit of your money. If all goes well, you should get your refund within 21 days. Last year’s average tax refund was more than $2,800. If possible, do not file a paper return. “We cannot stress this enough,” Rettig said. “There will again be delays with respect to paper tax returns this year, so if taxpayers need a refund quickly, we’re strongly urging them to not file on paper.”

Should I keep checking the ‘Where’s My Refund?’ tool?

The best way to track the status of your refund is to use the “Where’s My Refund?” tool at irs.gov . Updates are made daily, usually overnight, so don’t frustrate yourself by checking multiple times a day. You can also call the IRS refund hotline at 800-829-1954.

Is there a tax deduction for unemployment benefits for 2021?

Under the American Rescue Plan, Congress removed the federal taxability of unemployment benefits, up to $10,200, for households making under $150,000 in 2020. For married couples filing jointly, the limit was $20,400 if both spouses were collecting unemployment. This tax break was not extended for 2021. To date, the IRS has issued more than 11.8 million refunds totaling $14.5 billion to people who paid tax on unemployment benefits in 2020 when they didn’t have to. The IRS continues to review 2020 federal returns. Some taxpayers will receive refunds, while others will have the overpayment applied to taxes due or other debts.

Am I still eligible for the tax break if I didn’t get my unemployment checks until 2021?

Here’s where things become unfair to some taxpayers. Even if you qualified for the tax break in 2020, if you didn’t receive the money until last year, you miss out on the $10,200 unemployment exclusion. That’s what happened to Ashburn, Va., resident Al Metro. He filed for unemployment in 2020 and was told he didn’t qualify. Turns out, after getting help from the office of state Sen. Jennifer Boysko (D), Metro was able to prove he was entitled to unemployment compensation. However, because of the time it took for the situation to be straightened out, he didn’t receive the back payments until 2021. Metro said he tried numerous times to reach the IRS to find out whether he could still get the tax break but couldn’t get through to get an answer. “I’m pretty sure I’m out of luck,” he emailed. “But I’m writing to you in hope of you knowing a way I can get a break on this tax payment.” I talked to Metro and then asked the IRS for an answer. Metro was right. As written, the law clearly states that only payments made in 2020 qualify for the tax break, the IRS clarified. “If I had received the payments as due, I could have benefited from that program,” he said. “Now I’m stuck paying the tax on the full amount.” He estimates he will owe an extra $7,000 in taxes in 2021 because the unemployment benefit pushed his income up.

Can I still collect stimulus money?

Yes, you can still file your 2020 and 2021 tax returns to get any stimulus payments or recovery rebate credit you’re eligible to receive. If you didn’t get a first and second Economic Impact Payment or you received less than what you were entitled to get, you may be eligible to claim the 2020 recovery rebate credit by filing a 2020 tax return if you have not filed yet or by amending your 2020 tax return if it’s already been processed, the IRS points out. Likewise, if you were eligible but didn’t get an automatic payment for the third stimulus payment or you received less than the full amount, you have to file a 2021 return to claim the credit. For example, you may have had a child last year, but because the IRS used your 2020 return you didn’t get the full amount you are eligible to receive.

Why is there a delay in getting my refund if I’m claiming the earned-income tax credit?

The EITC helps low-to-moderate-income workers and families reduce their taxes and can result in a refund. It is one of the biggest tax breaks: Working families with three or more qualifying children are eligible for up to $6,728. In addition, for 2021 only, the American Rescue Plan bumped up the EITC for childless workers, nearly tripling it to $1,502. Although the IRS is encouraging people to file as soon as they can once they have all their tax documents, by law the agency cannot issue a refund on tax returns claiming the EITC or the additional child tax credit before mid-February. The additional time helps the IRS stop fraudulent refunds from being issued to identity thieves. “Due to the holidays, weekends and bank processing times, people in this group should expect to see their refunds by early March,” Ken Corbin, the IRS’s wage and investment commissioner and chief taxpayer experience officer, said in the press call last month.

What should I do if I didn’t receive any advance child tax credit payments?

If you were eligible but didn’t get any of the advance payments, you need to file a 2021 return and claim the credit.

What should I do with the letter I received from the IRS about the advance child tax credit?

The IRS has sent Letter 6419 in an effort to confirm the total amount of 2021 advance child tax credit payments individuals received and the number of qualifying children used to calculate payments. It’s important you keep this letter so you can accurately claim the other half of the child tax credit when filing your 2021 tax return. If there is a discrepancy, it will delay the processing of your return and any refund.

I received Letter 6419, but the total is wrong. What should I do?

If your advance-payments total differs from what’s listed in your letter, check your online IRS account . The IRS says don’t rely on the Child Tax Credit Update Portal or a tax transcript, because the information may be outdated.

Why did my spouse and I both get a notice about the advance child tax credit payment?

The IRS sent Letter 6419 to taxpayers who filed joint returns. Each spouse is treated as having received half of the advance child tax credit payments unless one of them took steps to unenroll from payments in 2021 using the Child Tax Credit Update Portal. This is important because it means married taxpayers will each receive a letter, and they will need to combine the information from the letters when they file their joint return, the IRS says.

What notices are being suspended by the IRS?

Because the IRS is so overwhelmed, the agency said it has decided to suspend some notices — but it’s not entirely clear which ones. The agency has specified suspending only he CP80 and CP080 . The notices involve situations in which the IRS has credited taxpayers for payments but the agency has no record of the tax return being filed. The suspension didn’t come in time for many taxpayers who received the notice and are in a panic about what to do. Although the notice told some people to mail in another return, those who called and got through to the IRS were given different instructions. “I was able to call and reach a warm body at the IRS,” said Sacramento resident Diane Cummings. “She quoted me a notice they had gotten and were supposed to pass on to us freaked-out filers. She said to wait 16 weeks from the date of that letter and do not send in a duplicate tax return. So I’m sitting tight right now, hoping they find my tax return. They already cashed the check I sent them last April.” Another reader wrote: “I sent in my return in March 2021 with a check for $1,604. Since the IRS cashed my check, and I have a copy of it as proof, I know they also received my form. I tried calling the number on the form, but the final message I got was that they were not able to help with the issue.” Here’s what the IRS had posted on its website as of Thursday: “Due to processing delays for 2019 and 2020 tax returns, the issuance of CP80 and CP080 (Unfiled Tax Return — Credit on Account) notices has been suspended. If you received a notice for your 2019 return and you filed timely, please refile the return. If you received a notice for your 2020 return DO NOT refile.”

Is there a free filing option for taxpayers?

IRS Free File is available to any person or family with an adjusted gross income of $73,000 or less in 2021. This year, there are eight IRS Free File products in English and one in Spanish. To search for companies offering Free File, go to irs.gov/freefile . Qualified taxpayers who generally make $58,000 or less, people with disabilities and taxpayers with limited English who need help preparing their tax returns can get free tax help through the Volunteer Income Tax Assistance (VITA) program . AARP Foundation Tax-Aide ( aarp.org/taxhelp or 888-687-2277) also offers free tax help for all taxpayers, particularly those 60 and older. Members of the military and qualifying veterans can use MilTax , which is designed to address situations specific to the military. Go to militaryonesource.mil or call 800-342-9647 for more information. Note: Please join me for an online tax chat at noon Eastern time Wednesday, Feb. 9. I will be taking your questions on the 2022 tax season, along with guest expert Eric Bronnenkant , head of tax at Betterment. His 15 years of experience include working for Ernst & Young and Fidelity and as an adjunct tax professor at Seton Hall University. Read more: Some workers who faced unemployment fraud in D.C. are being sent tax forms for the payments Tax season, once again, is going to be a hot mess. Here’s when to expect your refund this year. IRS delays triggered some premature collection notices Preparing for tax season? Send our personal finance columnist your questions. Five ways to fix the IRS, starting with a halt to most audits Three days after the 2022 tax season started, an overwhelmed IRS suspends some taxpayer notices

Personal Finance

Don’t file a paper return, call the IRS on a Wednesday, and other advice to get through a turbulent 2022 tax season

It’s going to be wild. So here’s our indispensable guide to filing your 2021 taxes, all in one convenient place.

By Michelle Singletary

February 4, 2022 at 7:00 a.m. EST

(Chanelle Nibbelink for The Washington Post)

The new tax season has begun, and if you’re among the unlucky millions still waiting for your 2020 federal return to be processed, your frustration level will probably just escalate.

If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST (1-855-275-7678)

Some taxpayers have already been complaining about conflicting directions from the IRS. Three days after the season began, the agency stopped sending certain notices because they were leaving filers confused and angry — or both.

These are the most frequently asked questions I’ve been receiving about the new tax season. Here’s what I know: