Find Out Why Your Tax Refund May Be Delayed
If you apply for the Earned Income Tax Credit or the Additional Child Tax Credit, your tax refund may be delayed longer than you think. We’ll talk about it in this issue.
Why Will My Tax Refund Be Delayed?
While the tax filing season begins Jan. 23rd, millions of low-income taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may not be able to get their refunds until mid-February at the earliest. The reason is the passage by Congress in 2015 of the Protecting Americans from Tax Hikes Act (PATH). The goal of the legislation was to make it easier for the Internal Revenue Service (IRS) to detect tax fraud from identity thieves and other cheats out to steal tax refunds. A key provision of PATH stipulates that no refunds can be issued before Feb. 15 if they claim either the Earned Income Tax Credit or the Additional Child Tax Credit. This the first year for the new law. The reason those two tax credits were targeted is because they are both refundable tax credits. When the total of those credits exceeds the amount of tax you owe, the IRS sends a refund for the difference.
How Many People Will This Affect?
There are about 28 million taxpayers who claimed the Earned Income Tax Credit and another 20 million who claimed the Additional Child Tax Credit.
What Should I Do About Filing My Taxes?
Few people like waiting to get their money back, but you should still file as you normally would. Doing that will make sure you’re able to clear the last hurdle for a refund for the Feb. 15 restriction.
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Information is power, and that’s why we bring you news like this. We also have tons of information about options for getting out of crippling debt. For a free consultation, call The Oswalt Law Group at (602) 225-2222.