Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Associate (Council Member)
Posts: 1,925
Registered: ‎12-13-2013

New Federal Tax Law May Impact Some 2017 Tax Refunds

I am writing this as an advance notice to inform members of The Community about a new federal tax law known as the "Protecting Americans from Tax Hikes (PATH) Act of 2015. While I do not know all the "in's and out's" about this new law at this time, the IRS has released an initial statement regarding a new procedure for the releasing of tax refunds that contain a claim for Earned Income Tax Credit (EITC or EIC) and/or the Additional Child Tax Credit (ACTC). Beginning on January 1, 2017, the IRS must "hold" ALL tax refunds containing claims of EITC and/or ACTC at least until February 15, 2015 before releasing the (entire) tax refund to these taxpayer(s). This may significantly affect those who file their tax returns early.

Considering there are numerous members of The Community who seem to be in this category of taxpayers, I wanted to post this information well in advance to assist in planning around this new procedure. I would strongly suggest reading the IRS announcement at the following link:

https://www.irs.gov/for-tax-pros/new-federal-tax-law-may-affect-some-refunds-filed-in-early-2017


WillMc1
Tax Professional (Retired)
Associate (Council Member)
Posts: 1,925
Registered: ‎12-13-2013

Re: New Federal Tax Law May Impact Some 2017 Tax Refunds

Since starting this topic a couple days ago, I've done a little more online searching in regards to the Protecting Americans from Tax Hikes (PATH) Act of 2015 with hope of obtaining further clarification on it's contents. I've found the following summarization that provides a brief description listed section by section of the legislation:

http://www.finance.senate.gov/imo/media/doc/Summary%20of%20the%20Protecting%20Americans%20from%20Tax...


WillMc1
Tax Professional (Retired)
Associate (Council Member)
Posts: 1,925
Registered: ‎12-13-2013

IRS Posted some "What to do" tips for filing in 2017

The IRS has recently posted some "What to do" or "What to expect" tips regarding filing your 2016 income tax returns beginning in January of 2017. Because I first posted the original message (see above) about changes being made due to the PATH Act of 2015 back in July, I thought to also include the following link which helps to clarify what taxpayers who claim EITC and/or ACTC, and who file early, can expect in regard to the delay in processing of their tax refunds.

https://www.irs.gov/individuals/steps-for-tax-filing-season

I do hope this is helpful information.

WillMc1
Tax Professional (Retired)