In 2015 Congress passed the Protecting Americans from Tax Hikes Act which among other tax law changes provides that taxpayers that file and claim the federal Earned Income Tax Credit (EITC) and/or the federal Additional Child Tax Credit (ACTC) will not receive their federal refunds until after February 15 this upcoming tax season.
Here are important messages these taxpayers need to know:
1) All taxpayers who claim the federal EITC and/or ACTC will have all their federal tax credits and refunds delayed until after February 15. The IRS cautions taxpayers that these refunds likely will not start arriving in bank accounts or on debit cards until the week of Feb. 27.
2) Regardless, filers should NOT wait to file. Schedule tax preparation appointment with Baltimore and Maryland CASH starting January 3, 2017 at NO COST. Click here for free tax locations.
4) Yes, it’s hard to wait on a federal refund but huge interest & big fees from RACs & RALs can take a big bite out of people’s hard earned money. Why not put all that money into your pocket instead?
5) IT’S YOUR MONEY – KEEP IT! Don’t waste it on paid preparers who will take a large percentage of your federal refund, whether there’s a delay or not.
6) The delayed payments ONLY affect Federal tax returns, NOT Maryland. State of Maryland refund checks including those with state EITC will be delivered on time.
7) Tax preparation by Baltimore and Maryland CASH’s IRS-certified volunteers is high quality, safe and FREE to anyone who earned under $54,000 in 2016!!!