New Year brings new tax laws

WILMINGTON, NC (WWAY) — Ringing in the New Year with new tax laws and there are some changes you need to know about.

There is a new federal law that may delay you from getting your tax refunds for a few extra weeks. It is called the Protecting Americans from Tax Hikes Act, also know as the PATH Act.

PATH was passed in 2015 but goes into effect this year. Certified Financial Planner, Rick Graves says it is a law intended to fight tax ID fraud.

“The reason for that was because of earned income tax credit returns have a high fraud level. And so those early returns. Identity theft, not just fraud from a tax payer but identity theft. So the IRS requested a delay in that,” Graves said.

It is a law that is pushing back refunds until February 15th. So when filing your taxes Graves says to keep that in mind.

“There’s nothing we can do about it. But the answer is make sure you understand that you may not be able to get your refund in late January so don’t count on it. It’s going to be 2 to 3 weeks longer to be able to get your tax refund if you’re claiming the earned income tax credit. That’s the key,” Graves said.

And when it comes to your taxes, Graves adds that it is never too early to start planning for next year.

“Always keeping good records. People talking about November and December. They didn’t keep mileage records. They didn’t keep receipts. So really just making it a New Years resolution to keep good records and keep receipts is a good thing,” Graves said.

Aside from a delayed refund, North Carolina is seeing lower personal income and corporate tax rates. And when it comes to state increases, there is an increase in gas tax but not by much, only going up a little less than a penny a gallon.

As for New Hanover County, Graves says there is an 8.5% increase in property taxes, raising rates for the new year.