2Tax Time Will Be More “Taxing” This Year
January 1st does not just signal the start of a new year. For many Americans, it marks tax refunds are just around the corner. Millions of low-to-middle income Americans count on their return.
But Obama and his Washington “buddies” quietly passed a bill in 2015-the PATH Act, which lets the IRS hold on to refunds of particular groups of taxpayers. When you see the groups being affected by the delay, and who isn’t, the picture becomes a little clearer.
The Earned Income Tax Credit (EITC) was established to reduce tax burdens on low-income families with children. It is given to taxpayers “based on a fixed-percentage of their earnings” according to the Tax Policy Center.
The Additional Child Tax Credit is available to families with three of more children- as an added form of relief.
Those claiming education expenses like the American Opportunity or Lifetime Learning Credit will also be affected.
Taxpayers who benefit from any of these credits will have to wait until March to receive their refunds. Or, in other words, the people who need their refund the most are the ones targeted by this new law.
This is allegedly being done to reduce waste caused by identity theft and fraudulent returns. But far more money is lost because of another group not impacted by Obama’s legislation…