Simplifying the 2019 Filing Season
Changes to 2019 Filing Season
It’s been a busy year for everyone. News of the Tax Cuts and Jobs Act of 2017 has people worried about how their taxes will be affected this year. Along with the PATH Act of 2015, tax regulations are changing drastically. Tax preparers are required to ask a few more questions this year to their clients to determine if they qualify for certain credits. So, if your tax preparer appears to be invasive, it’s not meant to be offensive to you as the taxpayer. It’s just them adhering to new regulations from the IRS. These new regulations are meant to prevent identity theft and inflated refunds which only hurt the taxpayer in the end.
Part of the changes means filing season has been starting a bit later for the past couple of years and it appears the filing start date is going to continue to start later. This year the filing start date is January 28, 2019 and the processing of tax returns will not begin until January 29, 2019.
What if I have Child Tax Credit and Earned Income Tax Credit (EITC)?
The filing start date will be the same for taxpayers claiming the Child Tax Credit and Earned Income Tax Credit (EITC). You will not receive your refund until February 15, 2019 at the earliest. Why the wait? The PATH Act is trying to prevent identity theft and incorrect EITC claims. Incorrect EITC claims costs the IRS and tax preparation businesses valuable time each year as proof must be reviewed to prove who can claim the dependent credits.
What do you mean by ‘proof’?
When a dependent has been claimed by another party, the taxpayer must provide school records, medical records, rental leases, etc. Whatever proves their dependent actually lives with them. In the case of divorced spouses or estranged spouses, a divorce decree or child support agreement may have to be used. To save time for the taxpayer, IRS, and tax preparer, the best decision the taxpayer can make is to ensure both parties know who will claim what dependent for which year.
In the case of identity theft, it’s critical to follow through on filing the appropriate paperwork. If you or your dependent is the victim of identity theft, please visit the IRS website for information on how you can resolve this issue. Publication 5027 especially deals with this issue and can assist you in resolving the matter as quickly as possible.