Tax guide

PATH Act of 2015

What is the PATH Act? 

The Protecting Americans from Tax Hikes Act, passed in 2015, referred to as the PATH Act, requires the IRS to take extra time to examine tax returns that claim the Earned Income Tax Credit or Additional Child Tax Credit. These credits are refundable, meaning that any amount left after covering the taxpayer’s tax liability will be refunded. The refundable quality of these credits makes them prime targets for tax fraud, which is why the IRS is now required by law to examine these credits closely before issuing refunds. If you file early and claim either credit, your refund won’t be issued until mid-February, and you won’t receive it until late February. This processing schedule is in accordance with the PATH Act and applies even if you file online. 

Under the provisions of the PATH Act, the IRS cannot issue Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds before mid-February. Where's My Refund? should show an updated status by February 22 for most early EITC/ACTC filers. The IRS expects most EITC/ACTC related refunds to be available in taxpayers’ bank accounts or on debit cards by March 3 if they chose direct deposit and there are no other issues with their tax return. 

 

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