Plan Ahead - Claiming Dependents? Refund Delays in 2018.

Most tax payers who claim dependents, but not all, claim a particular tax credit called the Earned Income Tax Credit and the Additional Child Tax Credit. These credits determine a considerable part of your tax refund each year.

Taxpayers should note that the IRS cannot by law issue refunds for people claiming the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. This law helps make sure that taxpayers receive the refund they’re due by giving the IRS more time to detect and prevent fraud.

The IRS expects the earliest refunds related to EITC and ACTC to be available in taxpayer bank accounts or debit cards starting on Feb. 27, 2018, if the taxpayer uses direct deposit and there are no other issues with their tax return. This additional period is due to several factors, including the Presidents Day holiday and banking and financial systems needing time to process deposits.