In a new article, tax preparation expert Frank Ellis explains the latest changes to the Earned Income Credit (EIC). This refundable credit can qualify taxpayers for up to $6,000, the author says. That means what isn’t used can go towards a tax refund. He also states that just a fraction of people who are eligible claim it, but details changes to the EIC in 2017 that can help one learn more.
First, Ellis says if the credit is claimed, refunds won’t be released until February 15, 2017. That applies to those who file their Form 1040 early. The delay, according to the author, is to reduce fraud and tax gaps. He also says taxpayers need a valid social security number, rather than amending previous tax returns. It is now illegal to go back and make changes to previous tax returns. If filing late, an extension will be needed, which can be filed with the IRS.
Also, fraudulent claims will be met with tax penalties. The IRS will see that as an accuracy or negligence issue, Ellis explains. The underpayment penalty can be applied as well. Fraudulent claims can now land a taxpayer in jail for up to ten years. In addition, the author provides a link to more information on the EIC and its requirements.
In closing, Ellis states that the changes being made are to benefit taxpayers. A link to TurboTax 2017 is provided as well.
To learn more about the EIC and the changes being made for the 2017 tax season, read the article posted online at https://couponcodesfor2015.wordpress.com/2016/11/08/changes-to-the-eic-that-could-affect-your-2017-tax-refund/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Address: 945 East 8th Street Suite A, Traverse City, Michigan 49686