2018 Tax Delay coming because of PATH act

2018 Tax Delay coming because of PATH act

Due to the PATH Act, many individuals who file Earned Income Tax Credit(EITC) as well as Additional Child Tax Credit(ACTC), will have their 2017 Tax Returns delayed in 2018.

If you claimed the EIC or ACTC, you will have your tax refund delayed until February 27th, 2018. The IRS can not legally released funds to those filing these credits until the end of February. This is due to the PATH act law passed in 2016. More details here.

While the IRS will process your return when it is received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb 27, 2018, if they chose direct deposit and there are no other issues with the tax return.

Possible Refund Delay for Some Early Filers

The PATH Act mandates that the IRS not issue a refund on tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit until Feb. 27. The additional time helps the IRS stop fraudulent refunds from being issued to identity thieves and fraudulent claims with fabricated wages and withholdings.

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