Where's my 2016 IRS Refund?

Are you an early tax season filer (before Feb 15)?
Do you receive the Earned Income Tax Credit (EITC) OR the Additional Child Tax Credit?

If so, you will be waiting until Feb 15th to receive your 2016 IRS refund.

WHY? In 2015, congress passed the Protecting Americans from Higher Taxes (PATH) Act. This law took effect immediately and provided many tax savings on the 2015 and future income taxes. But one piece of the PATH Act is taking effect for the first time this year; on your 2016 tax return.

The PATH Act says that if you receive either the Earned Income Tax Credit or the Additional Child Tax Credit and are receiving a refund, the IRS must hold your refund until Feb 15. Also, the whole refund must be held, not just the portion associated with these refundable credits.

One impact of the refund hold will be the large number of refunds made available on the day of Feb 15. If you normally have your tax preparation company print your refund check, you may find yourself standing in line waiting to pick it up, and then find that the banks and stores don’t have enough cash on hand to cash your check that day. I suggest you have your refund direct deposited if you have a bank account, or put it on a debit card if your tax preparation company offers one.

But don’t let this refund hold keep you from filing early. Some tax preparation companies may have a 'refund advance' available. Also, the IRS still expects to pay 90% of refunds within 21 days of acceptance.