Claiming EITC or ACTC? Your Refund May Be Delayed

If you are one of the millions who plan to claim the Earned Income Tax Credit or the Additional Child Tax Credit, there are some things that are important to know.

Regardless of when you file your taxes, the IRS is restricted by law from issuing any refunds to those claiming either of these credits until mid-February at the earliest. The reason for this delay is to give the IRS time to screen fraudulent filings attempting to illegally claim these credits.

Whether you typically file early or wait until the last minute, file as you usually do when you are ready, regardless of whether it is before or after this mandatory waiting period by the IRS. In other words, filing deadlines are unchanged; only the date the funds will be released to you is affected.

When you do file, be sure to track the status of your refund by clicking “Where’s My Refund” on either IRS.gov or on the IRS2Go app. The IRS expects the earliest refunds for those claiming either the EITC or the ACTC to be in bank accounts starting on or about February 27, assuming the filer has chosen direct deposit and there are no other issues with the tax return.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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