Starting Date

It looks like the IRS has set the opening date for processing 2018 tax returns. They announced on Monday that they will begin on January 28^th. The IRS has begun calling employees back to work to prepare for tax season.

They have also changed the previous announcement that refunds will be held until the government shutdown is over. It seems that Congress set up tax refunds to come from a special appropriation and the shutdown does not affect that money.

 However… (You knew there had to be a hitch) tax returns with refundable credits like the Earned Income Credit, American Opportunity Tax Credit and the refundable part of the Child Tax Credit will still be held. Processing on those returns will begin on February 15^th. This hold was part of the Path Act of 2015 and enacted to try reducing tax fraud from people filing made up returns. The idea behind the act is that it will give employers a chance to file their W-2 and the IRS will use that info to check the returns to verify income.

No matter when the IRS starts processing tax returns, taxpayers need to allow at least 2 weeks for a refund sent by direct deposit. A mailed refund check can add to week to the wait time. The IRS may take longer to get your refund to you if they want any extra look at the return.

BTW, April 15^th is actually April 15^th this year for most taxpayers. No weekend to change to due date. The exception is taxpayers who live in areas that celebrate Emancipation Day.

 

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