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Prepare For Delays in Tax Refunds, City Officials Warn Low-Income Residents

By Heather Cherone | January 23, 2017 5:51am | Updated on January 27, 2017 11:41am
 Refunds for people claiming some tax credits targeted at the working poor have been delayed to Feb. 15.
Refunds for people claiming some tax credits targeted at the working poor have been delayed to Feb. 15.
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CHICAGO — Some city residents who are counting on a fat tax refund to help pay bills should be prepared to wait longer than usual, Chicago officials warned.

The delay will be caused by efforts by the IRS to fight identity theft and fraud and will affect families claiming the earned income tax credit and the additional child tax credit, which are designed to help the working poor.

Although returns can be filed starting Monday, a new law requires the IRS to delay tax refunds for people claiming these credits until Feb. 15, which means those funds would not be available until Feb. 27 at the earliest, officials said.

City officials will offer free tax preparation help in the weeks leading up to April 15.

Each year, thousands of eligible households in the city do not claim $200 million worth of tax credits they are entitled to from the federal government, city officials said.

"Every year, Tax Prep Chicago helps thousands of residents across the city to maximize their tax returns, yielding thousands in credits per household that make a significant difference for so many of our families," Emanuel said in a statement.

Tax Prep Chicago will also help residents renew their Individual Taxpayer Identification Number, which is used to file taxes instead of a Social Security Number. Federal law requires all numbers to be renewed this year, according to city officials.

"Chicago truly is a sanctuary city, and part of that is making sure all of our city residents are aware of the laws that affect them, but also the resources available to them," Department of Family and Support Services Commissioner Lisa Morrison Butler said.

Families earning up to $55,000 and individuals earning up to $30,000 annually can take advantage of the free service at one of 19 sites throughout the city.

For more information, go to Tax Prep Chicago.

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