The Internal Revenue Service has announced the official start of the U.S. tax season, January 24th, 2022, as the date they begin accepting returns. However, when your tax refund will go out may depend on a few different factors. Here's what to expect if you're a car buyer looking to use your refund toward a down payment.
2021 tax refund timing. According to the IRS, electronic filing with direct deposit is the way to go to ensure you get your refund in a timely manner. Those receiving paper checks will wait longer than those with direct deposits. Most refunds can generally be expected within 21 days of filing your return.
This year, it's also important to make sure you claim any economic impact payments (stimulus checks) you received in 2021 and to properly claim any advanced funds from the Child Tax Credit. These are two important pieces of your claim which aren't typically present. Speak with a tax professional for details.
The IRS has been preparing for this year's tax season and its hurdles for months now to ensure a smooth rollout for the American public. They have these tips to make your tax season more manageable:
- Check the website. Due to the ongoing pandemic and its impact on the American jobscape, high call volume can't be met as readily via phone. The IRS recommends checking IRS.gov to see the status of your return and to track your refund.
- Watch your physical mail. Anyone who received a third stimulus check in 2021, and those who received advanced funds from the Child Tax Credit will be receiving a letter with important information to help with your filing process. These letters are already being sent for the Child Tax Credit, and stimulus check letters are slated to begin sending in the second half of January.
- File online, choose direct deposit. This is the quickest way to file and receive your tax refund. The IRS has several ways to file online including filing for free if you qualify.
The filing deadline for taxes this year is April 18, 2022, for most Americans due to the Emancipation Day holiday in the District of Columbia. Filers in Maine and Massachusetts have until April 19th to file. If you're asking for an extension, the request is due by the filing deadline.
What does this mean for car buyers? If you're looking for a new or used vehicle this tax season, a refund may be just what you need to get the ball rolling. In most cases, especially for bad credit borrowers, a down payment is a must when you're financing a car. A tax refund is a great way to make your required down payment or make it larger.
Tax time can be a great time to look for a used car, as well. With many consumers taking advantage of their extra funds, cars are typically heavily bought and traded in during this time of year.
Our take. When you have poor credit, finding a lender to work with may be more difficult. Instead of going from dealership to dealership only to be turned down, let us connect you with a special finance dealer that has the subprime lenders you're looking for. Get started today by filling out our online auto loan request form.