Kentucky won’t process tax refunds for 2 weeks. When to file and get yours without delay
If you’re hoping for a quick turnaround on your Kentucky state tax refund this year, make sure you file it well before Wednesday, Feb. 26.
Starting that day, Kentucky’s Department of Revenue is transitioning to a new tax system, and it will pause operations, including processing individual tax returns, for least two weeks to implement the change. According to the department, income tax refunds won’t be processed between Feb. 26 and Friday, March 14, though they can still be filed during that time.
Business tax filers will be particularly affected by the operations pause. That’s because they will not be able to file returns nor receive refund payments while the department is introducing a new business tax portal, called MyTaxes.
The Kentucky Department of Revenue officially began accepting returns Jan. 27, and tax season is well underway. So why is this change happening now? Here’s what to know, including tips to help you get your refund as quickly as possible this year.
Why is Kentucky updating systems during tax season?
As explained by the Kentucky Department of Revenue, the new tax portal for business filers will come with several improvements, including self-service capabilities for requesting a refund and making payments, among other new features.
While it sounds like a more streamlined tax experience, you’re probably wondering why this upgrade needs to happen now, instead outside the filing season. It’s a question we had, too.
The Herald-Leader posed that question to Kinsey Woodson, who serves as the communications director for Kentucky’s Finance and Administration Cabinet, which encompasses the state’s department of revenue. Woodson did not respond to our request for an interview, but responded to questions in an emailed statement, which reads in part, “based on the year-round business tax schedule, Feb. 26-March 14 is the best time to transition to the new system. We’ve contacted all individual income taxpayers to make them aware of the update, and to encourage them to file early.”
A notice from the Kentucky Department of Revenue email to filers in the state urges them to “file your taxes early to avoid a delay!” according to a copy obtained by the Herald-Leader.
Woodson added that Kentucky filers may still file their returns at any point in the tax season, between Jan. 27 and Tuesday, April 15, which is Tax Day.
Federal returns will not be affected by the change, and Kentucky filers will have a full month before and after the transition to file their state returns.
“MyTaxes will be a new, integrated and user-friendly tax system, consolidating many older systems. The upgrade to MyTaxes will provide more secure technology for the commonwealth, helping enhance data security and improve service for all Kentuckians,” Woodson wrote in the statement.
What should I know about the new tax system?
Business filers will be most affected by the transition to MyTaxes, which the state expects to launch March 14.
Filers should look out for an email from the department during the first week of March that will contain their new login credentials to MyTaxes. This specifically applies to business filers who previously used OneStop, E-Tax or WRAPS to file their state returns, according to Kentucky Revenue.
If you want to have your OneStop return data on hand for this filing season, make sure to print it before Feb. 26. Your historical return data from OneStop will be archived by the Kentucky Department of Revenue, but you won’t be able to access those records during the transition to MyTaxes. Having that data at your fingertips can help you file your return more smoothly and expedite any refunds you might be owed.
How can I get my refund as quickly as possible?
The Kentucky Department of Revenue recommends filers submit their returns electronically for the speediest turnaround on a refund. In addition, make sure the department has your correct bank account and routing number so your refund can be directly deposited into your bank account.
You can check the status of your refund in Kentucky by visiting refund.ky.gov. If you e-file, you could see your refund in as little as four weeks. Paper filers, on the other hand, can wait three times as long on their refund.
If you’re of low to moderate income, check out the Volunteer Income Tax Assistance program, which in Lexington is offered by the University of Kentucky J. David Rosenberg College of Law. The program offers free tax prep for basic returns.