As we covered in our previous post on some tax refunds being delayed until 2/15, a change implemented by Congress means that anyone who claims the Earned Income Tax Credit or Additional Child Tax Credit is going to have to wait longer than usual to receive their refund. This extra window of time will be used by the IRS to help combat the growing problem of fraudulent returns.
And even for filers who don't claim either of those credits, it can take a full three weeks before returns are processed and refunds issued. If you would like to receive money from your refund in much less time, an advance loan can be the perfect solution.
There are several significant benefits associated with this type of loan. The first is the fact that you don't have to wait for your refund to arrive. Even if you aren't claiming the EITC or Additional Child Tax Credit, it can still take up to three weeks to get your refund from the IRS. This type of loan means you can get going right away with the plans you have for that money.
Another benefit of this option is it's quite convenient. Unlike other loans that can require you to fill out a ton of paperwork, this one is based off your tax return, which means there's no extra work for you to do.
Finally, getting this type of advance loan is simple. As long as you work with a reputable tax preparer, you won't have to worry about figuring out any complicated tax issues on your own. Instead, the preparer will walk you through this straightforward process and get your refund money to you in the form of an advance loan.
With over two decades of industry experience and relationships, we understand how hard people in Cincinnati work for their money. That's one of the reasons Alpha Tax is committed to making taxes as easy as possible on our clients.
In addition to the quality of our tax preparation service, one of the ways we help to make things easy is by offering advance loans. if you sign up to do your return with us, you'll receive $50 immediately. We can also provide up to a $1200 refund advance in as little as one hour once your return is filed. The IRS starts accepting returns on 1/23/17, so don't miss out on your chance to get ahead of the curve. If you have any questions about our tax preparation service or advance loans, don't hesitate to give us a call at 513-528-9100.
According to the commissioner of the IRS, stolen identity refund fraud is a growing problem for the organization. Based on this issue, Congress approved a change that's designed to combat this type of fraud. However, fraudsters aren't the only ones who may be affected by the measure instituted by Congress. The significant change that this measure implements is requiring the IRS to hold refunds until February 15th for anyone who claims the Additional Child Tax Credit or Earned Income Tax Credit. As a result, people who are used to filing early and then getting their refund early may not have that experience in 2017.
While the IRS has acknowledged the impact this change will have on millions of legitimate taxpayers and has taken measures to help spread the word, the new policy has still caused plenty of frustration.
The Earned Income Tax Credit is designed to help families with low to moderate incomes. A single head of household with two children can qualify for this credit if they earned less than $44,648 in 2016 (the limit is $50,198 for a married couple filing jointly with the same number of children).
According to IRS statistics, more than twenty-six million filers have received the EITC. And in 2014, over twenty million filers claimed the Additional Child Tax Credit. As always, the IRS will accept and process federal tax returns for 2016 as soon as filing season begins. If someone files early and doesn't claim either of the credits discussed above, they can expect to receive their refund in less than twenty-one days after submitting their return.
But if a filer claims either of those credits, refunds will be held until February 15th. The purpose of this holding period is to give the IRS additional time to check for signs of fraudulent returns. Based on data from 2013, just under $15 billion of EITC payments were done in mistake. This accounts for nearly a fourth of all payments for this credit. Estimates from 2013 for the Additional Child Tax Credit peg the improper payment rate at over thirty percent.
If you want to avoid feeling stressed out this tax season and have the peace of mind that goes along with knowing that everything on your return was done correctly, be sure to take a look at how our tax preparation service can help.