Why Do I Have the PATH Message on Where’s My Refund? If you are a taxpayer who filed your tax return electronically and claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you may have noticed a message on the IRS website or app, Where’s My Refund? that says:
“We have received your tax return and it is being processed. The Protecting Americans from Tax Hikes (PATH) Act of 2015 requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until February 15. By law, the IRS cannot issue refunds before February 15 for any tax return claiming the EITC or ACTC. Check Where’s My Refund in mid-to late February for your personalized refund status. It’s updated once a day and remains the best way to check the status of your refund.”
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Why Do I Have the PATH Message on Where’s My Refund?
Why Do I Have the PATH Message on Where’s My Refund? If you are a taxpayer who filed your tax return electronically and claimed the Earned Income Tax Credit or the Additional Child Tax Credit, you may have noticed a message on the IRS website or app, Where’s My Refund? that says:
“We have received your tax return and it is being processed. The Protecting Americans from Tax Hikes (PATH) Act of 2015 requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until February 15. By law, the IRS cannot issue refunds before February 15 for any tax return claiming the EITC or ACTC’’.
This message is commonly known as the PATH message, and it means that the IRS is holding your refund until February 15, as required by the PATH Act of 2015. The PATH Act is a law that was passed to prevent fraud and identity theft involving the EITC and the ACTC, which are refundable tax credits that benefit low- to moderate-income taxpayers.
But what does the PATH message mean for you as a taxpayer? How does it affect your refund and your filing status? How can you get your refund faster and avoid common errors that could delay your refund? These are some of the questions that this article on why do I have the path message on where’s my refund will be answered. We will also provide some tips on how to prepare your tax return and track your refund status.
What is the PATH Act and How Does It Affect Your Refund?
The PATH Act, or the Protecting Americans from Tax Hikes Act of 2015, is a law that was passed by Congress and signed by President Obama in December 2015. The law includes several provisions that affect taxpayers, such as extending certain tax breaks, modifying certain tax rules, and enhancing certain tax benefits. One of the provisions of the PATH Act is that it requires the IRS to hold refunds on tax returns that claim the EITC or the ACTC until February 15.
The EITC, or the Earned Income Tax Credit, is a refundable tax credit that reduces the tax liability and increases the refund of eligible taxpayers who have earned income from working. The amount of the EITC depends on the taxpayer’s income, filing status, and number of qualifying children. The EITC can be worth up to $6,728 for tax year 2020.
The ACTC, or the Additional Child Tax Credit, is a refundable tax credit that reduces the tax liability and increases the refund of eligible taxpayers who have one or more qualifying children under the age of 17. The ACTC is a supplement to the Child Tax Credit, which is a non-refundable tax credit that reduces the tax liability of eligible taxpayers who have one or more qualifying children under the age of 17. The ACTC can be worth up to $1,400 per child for tax year 2020.
The reason why the IRS has to hold refunds on tax returns that claim the EITC or the ACTC until February 15 is to prevent fraud and identity theft involving these credits. The EITC and the ACTC are among the most commonly abused tax credits, as some taxpayers may claim them fraudulently or erroneously, either by inflating their income, filing status, or number of children or by using someone else’s identity or information. By holding the refunds until February 15, the IRS has more time to verify the accuracy and validity of the tax returns and the credits and to match them with the information reported by employers, banks, and other sources.
The PATH message does not mean that there is anything wrong with your tax return or your refund. It simply means that the IRS is following the law and holding your refund until February 15. However, this does not mean that you will receive your refund on February 15. The IRS still has to process your tax return and issue your refund, which may take longer depending on several factors, such as the volume of tax returns, the accuracy and completeness of your tax return, and the method of filing and receiving your refund. The IRS estimates that most taxpayers who claim the EITC or the ACTC will receive their refunds by the first week of March if they filed electronically and chose direct deposit as their refund method.
How to Know If Your Tax Return is Affected by the PATH Act?
There are two ways to know if your tax return is affected by the PATH Act and if your refund is being held until February 15:
- You claimed the EITC or the ACTC on your tax return. The easiest way to know if your tax return is affected by the PATH Act is to check if you claimed the EITC or the ACTC on your tax return. You can find this information on your Form 1040, Schedule 3, line 13 (for the EITC) and line 17 (for the ACTC). If you claimed either or both of these credits, then your tax return is affected by the PATH Act and your refund is being held until February 15.
- You see the PATH message on Where’s My Refund. The other way to know if your tax return is affected by the PATH Act is to check the status of your tax return and refund on the IRS website or app, Where’s My Refund?. You can check the status of your tax return and refund 24 hours after you file electronically, or four weeks after you mail a paper return. You will need to provide your Social Security number, your filing status, and your exact refund amount. If you see the PATH message on Where’s My Refund, it means that your tax return is affected by the PATH Act and your refund is being held until February 15.
How to Get Your Refund Faster and Avoid Common Errors?
If you want to get your refund faster and avoid common errors that could delay your refund, you need to follow some best practices and tips, such as:
1. File your tax return electronically and choose direct deposit as your refund method
Filing electronically is faster, safer, and more accurate than filing on paper. Choosing direct deposit is the fastest and most secure way to receive your refund. The IRS estimates that most taxpayers who file electronically and choose direct deposit will receive their refunds within 21 days of filing if there are no issues or errors with their tax returns.
2. File your tax return as soon as you have all the necessary documents and information, but not before you are ready
Filing your tax return early can help you avoid the rush and the potential delays that may occur during the peak of the filing season. However, you should not file your tax return until you have all the accurate and complete information that you need, such as your income statements, your expense receipts, your bank account details, your Social Security number, and your previous year’s tax return. Filing an incomplete or incorrect tax return can result in errors or rejections, which will delay your refund.
3. Claim the correct amount of the EITC and the ACTC, and provide the required documentation
The EITC and the ACTC are refundable tax credits that can significantly increase your refund, but they also have strict eligibility and documentation requirements. You should claim the correct amount of the EITC and the ACTC based on your income, filing status, and number of qualifying children. You should also provide the required documentation to prove your eligibility, such as your Social Security cards, your birth certificates, your school records, and your child care receipts. Claiming an incorrect or fraudulent amount of the EITC or the ACTC can result in errors, rejections, audits, penalties, or even criminal prosecution.
4. Review your tax return carefully before you submit it to the IRS
Check for any errors or omissions, such as incorrect or missing information, incorrect calculations, or mismatched forms. Use the error-checking tools and features that the tax software or tax preparer provides. You can also use the IRS [Interactive Tax Assistant], which offers answers to common tax questions and issues. Reviewing your tax return carefully can help you avoid errors or rejections that could delay your refund.
FAQs: Why Do I Have the PATH Message on Where’s My Refund?
Here are some frequently asked questions and answers about Why Do I Have the PATH Message on Where’s My Refund:
1. What does the PATH message mean?
A: The PATH message means that your tax return includes the EITC or the ACTC, and the IRS is holding your refund until February 15, as required by the PATH Act of 2015. The PATH Act is a law that was passed to prevent fraud and identity theft involving the EITC and the ACTC, which are refundable tax credits that benefit low- to moderate-income taxpayers.
2. When will I receive my refund if I see the PATH message?
A: If you see the PATH message, you will receive your refund after February 15, depending on the IRS processing time and your refund method. The IRS estimates that most taxpayers who claim the EITC or the ACTC will receive their refunds by the first week of March, if they filed electronically and chose direct deposit as their refund method.
3. How can I check the status of my tax return and refund?
A: You can check the status of your tax return and refund on the IRS website or app, [Where’s My Refund?]. You can check the status of your tax return and refund 24 hours after you file electronically, or four weeks after you mail a paper return. You will need to provide your Social Security number, your filing status, and your exact refund amount. You will see one of three messages: Return Received, Refund Approved, or Refund Sent. You will also see an estimated date of when you will receive your refund, if applicable.
Why Do I Have the PATH Message on Where’s My Refund: Conclusion
The PATH message on Where’s My Refund is a message that indicates that your tax return includes the EITC or the ACTC, and the IRS is holding your refund until February 15, as required by the PATH Act of 2015. We hope that this article has helped you understand why do i have the path message on where’s my refund, what it means, and what to do.