As of a few days ago, the IRS has lifted the PATH Act hold for 2023. This hold puts a delay in tax refunds for people who claim specific tax credits, which is not ideal for many. Although, the IRS works diligently to ensure that everyone receives them within good timing. Now, we can get to the most important part — when you should expect yours and other questions you may have.
What is the PATH Act?
The Protecting Americans from Tax Hikes (PATH) Act is a law passed by Congress in 2015 that affects tax refunds. Most notably, the PATH Act states that the IRS has to hold the entire refund of taxpayers who claim either the Earned Income Tax Credit (EITC) or Additional Tax Credit (ACTC) until after February 15th. This gives the IRS additional time to review and validate claims, which stops fraudulent refunds from being issued. This also helps protect taxpayers from having their hard-earned money stolen by criminals. So don’t worry if you haven’t received your refund yet — it’s on the way!
When will I receive my tax refund if I claimed the ACTC or EITC?
If you have claimed the ACTC or EITC, the IRS states that the earliest you can receive your refund is by February 28th if you chose direct deposit and there were no issues with your return. If you chose to have a paper check mailed to you, then it could take up to five weeks for your refund to arrive. The IRS does not guarantee an exact date for when your refund will be available, however, as processing times can vary depending on how it is filed. If you haven’t received your refund by the expected date and need assistance, the IRS recommends that you contact them directly or use their online resources.
How can I check the status of my tax refund?
The most popular option for checking the status of your refund is the IRS website using the “Where’s My Refund?” tool. Here, you can enter your Social Security Number, filing status, and exact refund amount. You will then be provided with an estimated time frame for when the refund may be issued, as well as any other relevant information. If you don’t have any access to the internet, you can also check the status of your refund with the IRS Refund Hotline at 1-800-829-1954. No matter which option you choose to check the status of your tax refund, it’s important to remember to be patient.
What are some reasons why an individual may not get their tax refund?
An individual may not get their tax refund for a variety of reasons. For example, if an individual’s return contains errors, the IRS may not be able to process it. Also, if the filer does not include the correct banking information or Social Security Number, the refund cannot be issued. Furthermore, if the filer has outstanding debt such as student loans or child support arrears, the IRS may apply the refund amount to that debt. It is also possible that a filer’s return was selected for an audit, which could delay the processing of their return. Understanding these reasons is very beneficial when filing your taxes.
As you can see, there are a few factors that could affect when or how much money you will receive from your 2023 tax refund, especially the PATH Act. However, it’s worth noting that any additional questions you may have can be answered by speaking with a tax professional. If you haven’t filed your tax return yet and need assistance, we invite you to start your return with Jacobwise!