Monday, January 23, 2017

Tax Day

Happy Tax Day! You can officially start filing your taxes for the year! The deadline to finish is about three months from now, on April 15th.

Some new tax laws take effect this year, thanks to Congress passing the PATH Act in 2015. The big change is that all refunds with the Earned Income Credit or Additional Child Tax Credit will not be released, until after February 15th.

Those two credits are refundable credits, which means they can give you a negative tax. If you owe negative taxes, then the government gives you money. It's pretty sweet. Unfortunately, due to the nature of these credits, they are sometimes abused. That's the main reason for this new policy; Congress wanted to give the IRS a few more weeks to examine those returns and cut down on abuse.

Before filing taxes this year, please double check that you got your kids' social security number correct! Otherwise, the IRS automatically takes away your child in processing. In order to get your kid back, you'll have to call the IRS, and some poor person there will be forced to math verify the return before going back to your original figures.

4 comments:

Phil said...

Michael I have a tax question, maybe you could answer it. My daughter cashed a savings bond that had $7300.00 in interest. That was the only 'income' she had. Does she have to file a tax return? Thanks in advance!

Michael Gray said...

I don't know the answer to that tax question off the top of my head, but you can almost certainly find the answer here: https://www.irs.gov/uac/do-i-need-to-file-a-tax-return

Phil said...

Michael, this is very helpful. Thank you, much appreciated.

Michael Gray said...

You're welcome! Glad I could help!