As in past years, the IRS will begin accepting and processing tax returns once the filing season begins, January 29, 2018. You can file as you normally do. However, according to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTC) refunds before mid-February. The EITC is a credit issued too low to moderate working tax payers. The ACTC is a credit for certain individuals who get less than the full amount of the child tax credit ($1000).
As the IRS begins releasing refunds for taxpayers who claimed the EITC and the ACTC, the tax agency reminded taxpayers that they should not expect refunds to be available in bank accounts or on debit cards until the week of February 27, 2018. The additional time is due to several factors, including weekends, the Presidents Day holiday and the time banks often need to process direct deposits.
Be careful when planning any financial obligations that are based on any specific refund date when claiming these credits. This includes being cautious of loan and preparer fee agreements where repayment is dependent upon the refund. Be especially aware of any stated repayment dates that are earlier than February 27. You don’t want to incur more costs by committing to any re-payment schedule that requires a full payment before the refund will actually become available.
The IRS still issues most refunds within the normal timeframe: in less than 21 days, after being accepted for processing by the IRS. You can check the status of your refund with the Where’s My Refund? This tool allows you to check the status of your tax refund online within 24 hours after the IRS receives your e-filed return or 4 weeks after you mail a paper return. Updates are made daily, usually overnight, IRS.gov or the IRS2Go Mobile App. Where’s My Refund?
