Tax Tip Tuesday: Check Your Withholding
The IRS is urging taxpayers to check their withholding because of some new factors this year that could affect the timing of their refunds in 2017.
A major change will affect some early tax filers claiming two key credits who won't see their refunds until after February 15th.
Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes Act (PATH), the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at least February 15th. This change helps ensure that taxpayers get the refund they are owed by giving the agency more time to help detect and prevent fraud.
As the IRS steps up its efforts to combat identity theft and tax refund fraud through its many processing filters, legitimate refund returns sometimes get delayed.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.