WASHINGTON — The Internal Revenue Service is reminding Pennsylvania taxpayers who claim the Earned Income Tax Credit or Additional Child Tax Credit to plan on a refund delay until Feb.15.
A recent federal law change aimed at making it easier for the IRS to detect and prevent refund fraud, requires the IRS to hold the refund of any tax return claiming either the Earned Income Tax Credit or Additional Child Tax Credit until Feb. 15. By law, the IRS must hold the entire refund, not just the portion related to those credits.
“I want to remind folks that as we move into the holiday season, some refunds will be delayed next year so they should plan ahead,” said IRS spokesperson Matt Leas. “To avoid any further delays, it’s important that taxpayers file as they normally would and not wait until later in the filing season.”
IRS officials said as of June 2016, a total of 919,000 working individuals and families in Pennsylvania received $2.1 billion in Earned Income Tax Credit alone, putting an average of $2,271 into the pockets of low-income working individuals and families. Similarly, 566,200 working individuals and families in the state received a total of $714.31 million in the Additional Child Tax Credit, an average of $1,262 per individuals and families. The IRS emphasizes that these are full-year totals for both of the credits and that only those claims filed before Feb. 15 will be affected by the new law.
To avoid any further delays on their refunds, the IRS is asking Pennsylvania taxpayers to file their returns as they normally do, not wait to file later in the season. The IRS issues more than nine out of 10 refunds in less than 21 days; some returns however, are held for further review. Any amended returns take up to 16 weeks to process.
The IRS is also encouraging taxpayers to consider a tax-withholding checkup. By adjustingForm W-4, Employee’s Withholding Allowance Certificate, taxpayers can ensure the right amount is taken out of their pay so that they will not have to pay too much tax or wait until they file their return to get a refund. Taxpayers should submit the revised form to employers, and employers will use the form to figure the amount of federal income tax to be withheld from pay. For help, use theWithholding Calculator onIRS.gov.
The IRS has aspecial page onIRS.gov with steps to take now for the 2017 tax filing season.