Ready Set Go to Kindergarten

Important Tax Information for Families

Nicolle Bellmore Pierse - Tuesday, November 15, 2016

You may have heard that the IRS recently announced that 2016 tax refunds including the Earned Income Tax Credit (EITC), the Additional Child Tax Credit (ACTC), and/or the American Opportunity Tax Credit (AOTC) will not be issued until February 15, 2017. 

Before you panic and start getting upset with the IRS, let’s talk about the real reason this is happening. The refund delay is required by a new law, the Protecting Americans from Tax Hikes (PATH) Act. The  point of the delay is to give the IRS more time to verify identities and run additional security tests to make sure that the refunds are issued to the correct individuals. This is actually a great service to families with children who claim the EITC and ACTC to help them avoid the rush of the “first come, first-served” approach in claiming children for these refunds. Also, it tackles identity theft issues before they become major problems for families (think: no having to fight a legal battle to get your refund or reestablish you child’s identity to the IRS!). 

Although these additional steps will cause delays in issuing refunds, the overall effect of avoiding further problems down the road is a win-win for everyone!

Contributed by: Emily Laurel, The United Way of Greater Lorain County
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