Tax filers who utilize the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) should prepare for a potentially longer wait for their refunds this coming tax season. Due to regulations set by the Protecting Americans from Tax Hikes Act of 2015, those claiming these credits will not see their refunds until at least the beginning of March.
The law mandates that the Internal Revenue Service (IRS) is unable to issue refunds stemming from the EITC and ACTC before mid-February. This delay is intended to provide the IRS additional time to verify the income and identity of taxpayers, thereby combating instances of fraud.
The average refund for individuals claiming the Earned Income Tax Credit is approximately $2,916, a significant financial boost for working families. IRS Chief Executive Officer Frank J. Bisignano underscored the importance of the EITC, stating that it plays a vital role in supporting American families and rewarding their labor. He urged eligible taxpayers to ensure they claim the full amount they are entitled to under the Internal Revenue Code.
The Additional Child Tax Credit functions as an extension of the Child Tax Credit, allowing families to access a refundable sum. Out of the total $2,200 available for each qualifying child through the Child Tax Credit, about $1,700 can be claimed through the ACTC.
To assist taxpayers in navigating these credits, the IRS encourages individuals to visit its official website, IRS.gov, for comprehensive information and guidance.
