2 Popular Tax Credits Will Delay Refunds in Virginia: IRS

Virginia taxpayers who are claiming two key tax credits will have to wait a bit for their tax refunds, according to a statement from the Internal Revenue Service.

Federal refunds have been delayed to Feb. 15 for Virginia taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit due to a new federal law that requires the IRS to hold refunds of any tax return claiming the EITC or ACTC in order to make it easier for the IRS to detect and prevent refund fraud.

“As we approach the upcoming holidays we always caution and encourage taxpayers not to rely on getting a refund by a certain date, especially when making major purchases or paying bills,” IRS Spokesman Mark Green said in the statement.

The announcement is likely to affect a huge number of Virginians. The IRS says that Virginia residents received $1.4 billion just from the EITC, and 410,400 individuals and families received an average of $2,352 from the credit. A total of $5.3 million was claimed via the ACTC, or an average of $1,304 per individuals and families who claimed the credit.

The IRS is urging Virginia taxpayers to file returns as early as possible in order to avoid further delays. The IRS is also warning taxpayers not to count on a refund by a certain date, as most refunds are issued in less than 21 days but some are held for longer, the statement notes.

Image via 401KCalculator.org