Friday, January 20, 2017

EITC Return Delayed

Each year, more than 27 million low- and moderate-income households file taxes and receive a refund from the Earned Income Tax Credit (EITC). For the first time in 2017, many early filers—more than half of those claiming the EITC and Child Tax Credit (CTC)—will wait longer for their refunds.

The Protecting Americans from Tax Hikes (PATH) Act of 2015, which made provisions of the EITC permanent, also required the IRS to delay tax refunds for those claiming the EITC or the refundable portion of the CTC until at least February 15 in an effort to verify wages and reduce errors. 
 This delay could have serious effects on families who depend on the EITC and CTC. The study found that many families (over 70% of early filers with children) rely on the timeliness of their refund immediately to pay down debt on a car or house.

Source: Center for Law & Social Policy, 1/4/17, EITC Delay

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