Expecting to spend that tax refund early?
IRS has announced Tax Refund – Delays for 2017
What You Need To Know
Mike Steele, owner of Ultimate Tax says that this year is going to be different. The people that need the money the most are going to be waiting the longest. The unintended consequence of the IRS finally catching up with the time. Employers will have to report their income sooner than in the past too.
According to a new tax law change, the IRS cannot issue refunds before February 15 for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit.
This applies to the entire refund, even the portion not associated with these credits.
The IRS will begin to release EITC/ACTC refunds starting February 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or on debit cards until the week of February 27.
What You Need To Do
Be careful not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations.
You don’t need to wait until February 15 to file your tax return. While the IRS must hold the refund until February 15, it will begin taking the steps it normally does to process your tax return once the filing season starts.
File a complete and accurate return and include all known refundable credits with your original return.
Check Where’s My Refund on IRS.gov or the IRS mobile app, IRS2Go, after February 15 for your personalized refund status.
Ultimate Tax, is a professional tax software provider and has been providing solutions to preparers for many years. Hang on everyone it’s going to be a bit of a challenge.