En esta noticia
Millions of taxpayers who qualify for certain federal tax credits may have to wait longer to receive their IRS tax refunds. Under federal law, the agency cannot issue refunds before mid-February when a tax return claims the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
The delay is part of the Protecting Americans from Tax Hikes (PATH) Act, a law designed, among other things, to give the IRS more time to detect errors and prevent refund fraud. The rule applies to the entire refund, even if only part of the amount comes from one of these credits.
When will the IRS release refunds for EITC and ACTC filers?
The IRS says taxpayers who claim either credit can generally expect their refunds by March 2 if they meet three conditions:
- They file their tax return electronically.
- They choose direct deposit as their refund method.
- The IRS does not identify any problems with their return.
Some taxpayers may receive their money a few days earlier. The agency says its Where’s My Refund? tool should display an updated status by February 21 for most early EITC and ACTC filers.
These dates are not a guarantee for every taxpayer. Processing problems, requests for additional information, weekends and bank holidays may affect when the money becomes available. Financial institutions may also need extra time to post a direct deposit.
Why does the IRS hold the entire tax refund?
The delay is required by the PATH Act. When a taxpayer claims the EITC or ACTC, the IRS must wait until mid-February to issue the refund. The restriction covers the full amount owed to the taxpayer, not only the credit that triggered the hold.
The measure gives the agency additional time to review returns and identify possible errors or fraudulent claims before sending the money.
The hold does not automatically mean that a taxpayer made a mistake or that the IRS has opened an investigation. However, if the agency needs more information to process a return, it may send a letter requesting documentation.
What are the EITC and ACTC tax credits?
The Earned Income Tax Credit (EITC) is a federal tax benefit for workers and families with low or moderate earned income. The amount depends on factors such as income, filing status and the number of qualifying children. Eligible taxpayers may receive the credit as part of their refund.
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. It may allow eligible families to receive a refund when the credit exceeds the amount of federal income tax they owe, subject to the applicable rules.
Both credits can increase the amount a taxpayer receives from the IRS. However, claiming either one can trigger the mandatory refund delay.
How to track an IRS refund
Taxpayers can check their payment status through the IRS Where’s My Refund? online tool, their IRS Online Account or the IRS mobile app.
The agency updates its refund tools once a day, usually overnight, so checking several times a day will not provide new information.
If the IRS needs additional documents or detects an issue with the return, it will contact the taxpayer by mail. In that situation, the refund may take longer than the standard timeline.