In order to better combat fraud, the IRS announced that taxpayers that claim the Earned Income Tax Credit (EITC) and/or the Child Tax Credit (CTC) will have to wait a little bit longer for their tax refund check or deposit. This new law only affects taxpayers that qualify for the EITC and claim a dependent. Taxpayers with dependents who don’t qualify for either the EITC and/or CTC nor Taxpayers who qualify for the EITC without dependents, won’t have their refunds affected.
The IRS is expected up to a month delay in processing and depositing the returns. This means: if you file when the IRS opens on Jan. 23rd, 2017, returns for those affected likely won’t be processed until Feb. 15th and deposited until the end of Feb.
You can view the full IRS release below:
The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or debit cards until the week of February 27 — if there are no processing issues with the tax return and the taxpayer chose direct deposit. This additional period is due to several factors, including banking and financial systems needing time to process deposits.
Where’s My Refund? on IRS.gov and the IRS2Go mobile app will be updated with projected deposit dates for early EITC /ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where’s My Refund? or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.
Why is my EITC refund being held?
Beginning in 2017, if you claim the EITC or ACTC on your tax return, the IRS must hold your refund until Feb. 15. This new law requires the IRS to hold the entire refund — even the portion not associated with the EITC or ACTC. Like previous years, some tax refunds may be held if there are questions about the tax return or the IRS needs more information.
Will I get my refund on Feb. 15?
While the IRS will begin to issue EITC/ACTC refunds starting Feb. 15, you should not count on actually seeing your refund until the week of Feb. 27 — if you chose direct deposit or a debit card and there are no processing issues with your tax return.
Why does it take so long for the funds to show up in my account?
It takes additional time for refunds to be processed after leaving the IRS, and for financial institutions to accept and deposit them to bank accounts and products like debit cards. Also, many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day affects their refund timing.
How do I check the status of my refund?
Where’s My Refund on IRS.gov and the IRS2Go mobile app remains the best way to check the status of a refund. Where’s My Refund will be updated with projected deposit dates for early EITC and ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where’s My Refund or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so taxpayers should not contact or call them about refunds before the end of February.