Facts About the PATH Act: New Law Requires IRS to Hold Some Refunds Until Feb. 15

Tax News

The Protecting Americans from Tax Hikes (PATH) Act, signed into law in December 2015, requires the IRS to hold tax refunds that include Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) until February 15, 2017.

The new tax law, which applies to all tax preparation methods, is intended to help detect and prevent tax fraud. The extended refund release also gives the IRS more time to ensure taxpayers are properly claiming the credits, so they get the refund they are owed.

The IRS will begin accepting and processing tax returns when they open for the season on January 23, 2017. Tax refunds for those who claim Earned Income Tax Credit or Additional Child Tax Credit will begin to be issued on February 15, 2017, so there’s no need to wait! The sooner you e-file your return, the sooner you’ll get your tax refund.  According to the IRS, taxpayers who claim the EITC or ACTC will likely see refunds the week of February 27.

Most taxpayers will not be impacted by the change in the law and the IRS expects the majority of tax refunds (more than 9 out of 10) will be issued in 21 days or less from acceptance. Last year, close to 75% of all taxpayers received a federal tax refund close to $2,800. Eight out of 10 taxpayers receiving tax refunds choose direct deposit, and e-file with direct deposit is still the fastest way to get your tax refund. If you have questions about the processing of your tax return, the IRS “Where’s My Refund?” site is the best place to get personalized refund information when you need it.

When you are ready to do your taxes, you can be confident that TurboTax has you covered. It’s up to date with latest tax laws, asks you simple questions, and searches for tax deductions and credits you may be eligible for based on your answers. For more information on the PATH Act and other tax laws check back here with the TurboTax blog.

Comments (10) Leave your comment

  1. I got an email saying to sign in to my turbo tax account to find out my estimated date on when to get my refund but when I do it doesn’t say anything except that it’s been excepted. Is there somewhere else I can go to find out what my estimated date is? It was excepted on January 30th,2019

  2. Hey Lisa…
    I’m concerned because I filed on Jan 30 and and it was received on Feb 2nd. It’s still processing and I’m getting worried….I have a refund containing EIC and actc.

  3. Hey Lisa I am claiming eitc/actc my refund status went from the path act to processing how long does this process normally take I know my return was accepted on January 29th

  4. Hey Lisa i dont want to ask a question all i wantbto say for years i have using taxact and last year i decided to use i decided to use TurboTax and all i can say it was amazing using this system because yall hold all of my information for the prior year unlike taxact i always had to look for the adjusted gross income on other paper…what a phenomenal job

    1. Thank you Neffratia. Glad you like our product. I will let our product team know your feedback. Good luck with your taxes.
      Lisa Greene-Lewis

Leave a Reply