Getting a refund check from the IRS is great but if you are expecting a large refund, check your year-to-date withholding and consider changing the taxes withheld now.
This is especially important if you are claiming the earned income tax credit, or EITC, or the additional child tax credit. Why? The IRS is now required by law to hold all refunds on those returns until Feb. 15. The new law was put into place to allow the agency additional time to detect and prevent tax fraud.
IRS Commissioner John Koskinen said in a statement: “It’s a personal choice if you want to have extra money withheld to get a bigger tax refund, but you have options available if you prefer to have a smaller refund next year and more take-home money now.” You will need to complete Form W-4, Employee’s Withholding Allowance Certificate, to adjust the amount of taxes withheld and submit it to your employer.
Tax season can be a frustrating and troublesome time for many, especially if you own a small business or are faced with complicated tax returns. We are here to help. Having your tax return prepared by a CPA assures your tax professional has undergone rigorous education and licensing to earn the trusted reputation that they have. Our experience, qualifications and broad knowledge about the tax system at Sterling Tax & Accounting may save you hundreds, if not thousands, of dollars at tax time.