The Protecting Americans from Tax Hikes (PATH) Act of 2015 passed in December 2015 put into place the following restrictions on WHEN refunds will go to taxpayers: if you claim the Earned Income Tax Credit (EITC or EIC) or a refundable Child Tax Credit the IRS is not permitted to release your refund, by law, until February 15, 2018 (the IRS estimates refunds using direct deposit will begin to hit accounts on 2/27/18). Many lower-income taxpayers file as early as possible each year to get their refund as quickly as possible … this will no longer be the case. The powers that be in the legislature believe that delaying these types of refund claims will allow the IRS to reduce the claims for fraudulent tax filings that have run rampant in recent years. While this logic may prove worthy, be aware that if you claim the EIC or refundable CTC plan on not seeing your legitimate refund until mid-February. Give me a call if you’re unsure whether you fall into this category and what the impact may be for you.
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