Earned Income Tax Credit and Additional Child Tax Credit
This year many taxpayers will see a change in the time that they receive their income tax refunds. “The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 — if there are no processing issues with the tax return and the taxpayer chose direct deposit. This additional period is due to several factors, including banking and financial systems needing time to process deposits.” Source IRS: Refund Timing for Earned Income Tax Credit and Additional Child Tax Credit Filers
The new law requires that tax returns that have Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) be held until February 15th. This will allow the IRS to confirm earning from employers who are now required to file their informational returns for w2’s by January 31st. This is one way for the IRS to detect and prevent fraudulent income tax refunds from being issued.
Starting February you will be able to check the Where is my refund? on the IRS website. Your refund issue date will be updated a few days after the 15th. Many taxpayers will not receive a refund for about a month after filing their tax return.
Taxpayers should be very patient during this time. An option that we will be offering our tax clients will be the free refund advance of $500 to $2500 this year.
Your Tax and Accounting Coach,