Refunds will be frozen due to refundable credits
In order for the IRS to reduce fraud, the IRS by law will freeze all of your refund until February 27, 2019 if you are requesting certain credits such as the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) which are refundable credits.
Refundable credits mean that even if you do not owe any tax, the credits will be refunded. You could file your tax return and request these credits even if you are not required to file a tax return.
Around 25 million taxpayers were granted $63 billion for this credit during 2018. The EITC is a credit given for you or your children that meet the requirements and is based on earned income.
Workers, self-employed, contract workers, and farmers with children that earned $54,884 or less during 2018 could be eligible for this refundable credit. If you have 3(or more) children, the maximum credit is $6,431; for 2 children, the maximum credit is $5,716; for 1 child, the maximum credit is $3,461. Those that do not have qualifying children could be eligible if they have earned income of $20,950 or less. The maximum credit for them is $519.
The ACTC is a credit that does not place a limit on the number of qualifying children you may have and has a maximum of $1,400 per child. People with ITINs can request this credit only for children with a valid social security number by April 15, 2019. You may qualify for a $500 nonrefundable Family Credit might be requested for each qualifying child with an ITIN or qualifying family members.
Problems with the IRS? Legal Aid of Western Missouri’s Low Income Taxpayer Clinic (816-474-6750) could offer free help if you qualify.
