Child Tax Credit

Payments under state or local tax credit programs may be deductible as business expenses

Payments under state or local tax credit programs may be deductible as business expenses

Business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses, the Internal Revenue Service said today.

Delaying Tax Refunds Constrains Spending On Daily Living Expenses

Delaying Tax Refunds Constrains Spending On Daily Living Expenses

The Protecting Americans from Tax Hikes (PATH) Act of 2015 required the IRS to delay tax refunds until at least February 15 for taxpayers who claimed an earned income tax credit (EITC) or additional child tax credit (ACTC). The delay was intended to provide the IRS with enough time to match information documents (such as W-2 forms) to tax returns in order to improve compliance. The provision, which took effect in 2017 (when people were filing their 2016 tax returns), postponed refunds for about two weeks for many low- and moderate-income taxpayers who tend to file early in the tax season. New research from the Federal Reserve shows as refunds were being delayed, so too were purchases from retail and grocery stores.