Jerry Tipton CPA
Due to dependants being claimed and all the identity fraud that goes on with social security numbers a new law recently passed requires the IRS to hold refunds if you are claiming the Earned Income Tax Credit and the Additional Child Tax Credit UNTIL Feb. 15th. Clients should be aware it will take several days for these refunds to be released and processed through banks. Factoring in weekends and the President's Day holiday, the IRS has cautioned that many affected taxpayers may not have actual access to their refunds until the week of Feb. 27th.
Under new legislation passed from Congress under H.R. 1295, the Trade Preferences Exentsion Act of 2015 a provision was added that does NOT allow an education credit, American opportunity credit, hope scholarship credit, and lifetime learning credit, unless the taxpayer, spouse or dependent receives the Form 1098-T, Tuition Statement. This is a new law, so in order to receive credit the taxpayer must have the 1098-T form to receive this credit.