The PATH Act, which stands for Protecting Americans Against Tax Hikes, was enacted in 2015 as a significant tax reform legislation. This act introduced 50 tax credits and deductions, while also making several widely-used tax credits permanent. One of the most notable effects of the PATH Act was the implementation of a delay for certain tax returns aimed at reducing tax fraud. Specifically, taxpayers who submitted returns claiming the Earned Income Tax Credit or the Child Tax Credit were prohibited from receiving their tax refunds before 15th February. Tax refunds are handled on a ‘first come, first served’ basis, which is why this delay was implemented.
Consequently, individuals attempting to file fraudulent tax returns would likely do so early in the filing season, before legitimate taxpayers had the opportunity to submit their returns. An analysis of fraudulent tax returns indicated that those claiming the EITC and CTC were frequently involved in fraudulent activities, as these credits are refundable, allowing taxpayers to receive refunds exceeding the amount they originally paid in taxes. This article will assist the readers to learn about the PATH Act 2024 and PATH Act 2024 Refund Dates. Also, the basic knowledge regarding the PATH Act is stated below.
PATH Act 2024 Refund Dates
A major piece of tax reform legislation was passed in 2015 and is known as the PATH Act (Protecting Americans Against Tax Hikes). Together with permanentizing some popular tax credits, this measure created 50 new tax credits and deductions. Implementing a delay for certain tax returns to lower tax fraud was one of the PATH Act’s most prominent effects. More specifically, PATH Act were not allowed to be received until 15th February for individuals who filed returns that claimed the Child Tax Credit or the Earned Income Tax Credit. Tax refunds are handled on a ‘first come, first served’ basis, which is why this delay was implemented. As a result, those making false tax return attempts would probably try to file early in the filing season, before the time when lawful taxpayers could file their returns. Given that the EITC and CTC are refundable and allow taxpayers to collect refunds over the amount they initially paid in taxes, a review of false tax returns revealed that individuals who claimed these credits were typically involved in fraudulent activities.
PATH Act 2024
| Title | PATH Act 2024 |
| Act Name | PATH Act |
| PATH Act Stands for | Protecting Americans Against Tax Hikes |
| Passed in | 2015 |
| Aim of the Act | Implementation of a delay for certain tax returns aimed at reducing tax fraud |
| Starting Acceptance Date | 29th January 2024 |
| Category | Finance |
PATH Act Intentional Consequences 2024
- Millions of low-income households will have to wait nearly six weeks longer to get their tax refunds one of the PATH Act’s largest unforeseen consequences. To make up the difference, a large number of these same households are now using tax advance return loans.
- Over 20 million households used tax return loans, and that number is growing, according to a study conducted by the Government Accountability Office. The correlation is astounding when one considers that, according to the IRS, 25 million households submit the EITC, of which 31 million are eligible but do not file a tax return to receive it.
- Taxpayers across the country may pay more as a result of tax refund loan fees, interest, and other costs associated with the PATH Act, even while it is reducing refund fraud and saving the government money.
Measures Against Fraud in the PATH Act 2024
The PATH Act introduced several modifications that not only included anti-fraud measures but also created, extended, or improved various individual income tax credits, deductions, and exclusions, resulting in significant savings for taxpayers. The following noteworthy adjustments continue to benefit taxpayers:
- Extra Child Tax Credit: The PATH Act lowered the threshold at 15% of earned income over $3,000 rather than the originally planned rise to $10,000, making it easier for lower-income families to get the refundable element of the child tax credit.
- American Opportunity Tax Credit: This credit, which offers up to $2,500 in partially refundable amounts for the initial four years of higher education, was made a permanent fixture by the PATH Act.
- Computers Qualified for Distributions Under the 529 Plan: The PATH Act allowed students enrolled in qualified educational institutions to receive tax-advantaged distributions from a 529 plan to pay for computer, software, and Internet access costs.
- EITC: Under the PATH Act, employees who have three or more children will receive a permanent credit increase of 45% of their earned income instead of 40%. Furthermore, it permanently raised the phase-out criteria for joint filers, thereby mitigating the marital penalty linked to the benefit.
- Educator Expense Deduction: The PATH Act made the deduction permanent, provided for yearly increases to the maximum deduction due to inflation, and included professional development courses as deductible costs.
- Tax Credit for Installing Electric Vehicle Recharging Equipment: The PATH Act extended the tax credit for electric vehicle recharging equipment installations until 2016.
- Mass Transit Exclusion: It was also established that employer-provided vanpool benefits and mass transit passes are excluded from gross income.
Tax Refund Dates For PATH Act 2024
People who receive PATH ACT returns usually receive their tax refunds around the first week of March, according to data from previous years. In 2024, the majority of earlier filers will receive their refunds during the week of 26th February – 1st March, while the earliest PATH Act tax returns are anticipated to come around 19th February. Depending on when you submitted your tax return, some people could not even receive their refunds until the week of 11th March.
Recall that eFile returns won’t even be accepted by the IRS until 29th January 2024.
| Refund Chart For PATH Act 2024 | ||
| Acceptance Date | Direct Deposit Sent Date | Paper Checks Mailed Date |
| 29th Jan – 3rd Feb 2024 | 26th February 2024 | 3rd March 2024 |
| 4th Feb – 10th Feb 2024 | 1st March 2024 | 8th March 2024 |
| 11th Feb – 15th Feb 2024 | 8th March 2024 | 15th March 2024 |
FAQs On PATH Act 2024 Refund Dates
PATH Act stands for Protecting Americans Against Tax Hikes.
50 tax credits and deductions were introduced under the PATH Act.
PATH Act was enacted in 2015.
