Usually when the tax filing due date arrives, most taxpayers breathe a sigh of relief. What most taxpayers don’t realize, that date will close the window for many on their ability to file a claim for a tax refund. READ THIS CAREFULLY: The IRS stated that for the tax year 2017, up to 1.4 million individual taxpayers lost their ability to claim a refund by missing the three year statute.
Another Tax Refund Delay Coming for Low Income Taxpayers
The infamous PATH Act of 2015, known as Protecting Americans from Tax Hikes, contains a provision that will delay a tax refund for certain taxpayers. This provision is effective with 2016 returns filed in 2017, and includes those returns that claim either the EITC (earned income tax credit) or the additional child tax credit.
The new law states that no tax refund will be issued that contains a claim for either of these refundable tax credits, before February 15, 2017, and forward, and thus another tax refund delay.
How to Manage Your Money and Take Control of Your Spending
There are a few simple steps for you to learn how to manage your money. To begin with, you need to understand that you’re in charge and not your bills. Take the time to find out exactly how your money is spent.
Most individuals can only guess where their money goes after they pay their fixed expenses such as the mortgage or rent, utilities, auto payment, and perhaps a student loan. If you want to take control of your spending and also get your debt under control, you must identify your spending patterns. Then learn how to manage your money by re-allocating funds that are spent on items that are unnecessary.
WARNING: A Large Income Tax Refund May Result In Delays
Well, you finally got around to filing your 2012 tax return, and you hope that an income tax refund will be forthcoming. You spent the better part of a weekend, gathering tax documents and receipts for your itemized deductions that your accountant will need to prepare your return.
You drive to his office on the day of your appointment, and proudly hand him all of your tax records, all properly organized. He, too, is surprised, and yes, pleased, that you spent so much time gathering all of the information and even organizing it for him.
After your brief meeting, having answered the few questions that he had, you leave and patiently wait to see what the results will be this year. A couple of days later, he calls and gives you the good news.
You breathe a sigh of relief when he tells you that there is a $5,100.00 income tax refund due on your Federal return. Your accountant says that he is going to e-file your return and use the direct deposit option, and the refund should be in your checking account in about ten days to two weeks.
Oh boy, you are thinking, that will really come in handy when your credit card bill comes in for recent dental work that had to be done. You sign View full post…
Posted: May 18, 2013 Under: Income Tax By: Gust Lenglet
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