The Internal Revenue Service (IRS) is issuing an important reminder to taxpayers regarding delays in refunds for those who claim specific tax credits. Taxpayers who file with either the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) will experience a delay in receiving their refunds until after mid-February, regardless of when their tax returns are submitted.
This delay is mandated by the PATH Act of 2015, which prohibits the IRS from issuing refunds tied to the EITC and ACTC prior to this time. Notably, this restriction applies to the entire refund amount and not solely to the portion associated with these two credits. The additional time is essential for the IRS to verify the accuracy of reported income and confirm the identity of claimants.
The EITC offers substantial benefits, providing taxpayers with up to $649 if they have no qualifying children, and up to $8,046 for those with three or more children, with the exact refund amount varying based on income and the number of dependents. On the other hand, the ACTC is part of the overarching Child Tax Credit, valued at $2,200 per qualifying child under the age of 17. The ACTC allows taxpayers to claim up to $1,700 of this credit as part of their refund.
According to the IRS, taxpayers who take advantage of these credits and file online while opting for direct deposit can anticipate receiving their refunds by March 2, provided there are no discrepancies in their returns. However, any issues identified by the IRS may lead to further delays, as the agency will reach out for additional information prior to processing the return.
Typically, filers who submit their returns electronically and choose direct deposit can expect their payments within 21 days following acceptance of their return. Taxpayers can monitor the status of their refunds using the IRS’s “Where’s My Refund” tool. The refund status should be accessible approximately 24 hours after e-filing current-year returns, 3 to 4 days for prior-year returns, and around 4 weeks for those submitting paper returns. For early filers claiming EITC or ACTC, their information will likely become available in the tracking tool by February 21.
Taxpayers are reminded that they have until April 15, 2026, to file their 2025 tax returns to avoid fines and penalties.
