Will your Tax Refund be impacted by the PATH Act?

By law, the IRS can’t issue refunds that include the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. Filing early still helps, but plan for the wait.

By the James Family Tax team

Like many people in the United States your family might rely on your tax refund at the beginning of the year to cover expenses from the holidays, to get ahead on bills or you might even be planning to spend it on some family fun.

However it’s important for you to know that many tax payers and early filers will have their refunds held by the IRS until after the 15th of February due to the Path Act.

But don’t worry we are here for you!

What is the PATH ACT?

The Protecting Americans from Tax Hikes act of 2015 also known as the PATH Act was enacted on December 18, 2015. The PATH Act contains several changes to the tax law that help safe guard against tax fraud. It also impacts individuals and the date when they will receive their tax refund.

How does the PATH ACT effect your Tax Refund?

Due to the PATH Act if you claim the Earned Income Credit or Additional Child Tax Credit the IRS is mandated to not release your tax refund until February 15th, in addition the law requires the IRS to hold the entire refund- even the portion not associated with the EITC or ACTC. This additional time was put in place to help stop fraudulent tax claims.

When will you get your Tax Refund?

When you file your tax return the IRS will not release your tax refund until after February 15th which means you might not see your refund money in your account until early March.

In addition the Refund timing will depend on your financial institution and when they receive your information from the IRS. You can always check “Where’s my refund” for your exact refund date. https://www.irs.gov/refunds

When should you file your Tax Return?

If you normally file early you can still stick with your plan. James Family Tax will be ready to file your tax return for you when you’re ready.

If you claim the EIC or ACTC then your refund will be held until February 15th but the earlier you file your tax return the earlier the IRS will process your tax return.

We know that a delay might be challenging for your family.

We are here to help you navigate this tax season. If you have additional questions please reach out to us or schedule your tax appointment at www. jamesfamilytax.com

How James Family Tax Can Help

Want a professional to handle your return? Our Tax Family is here year-round at our San Antonio and Schertz offices.

Book an appointment at our San Antonio or Schertz office, or call (210) 864-1788.