The Internal Revenue Service (IRS) updated its guide of advice and recommendations for taxpayers who claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). According to the agency, refunds tied to these benefits began processing in late February, so tax refund submission dates are slightly later than for those who did not claim these tax credits.
Both loans represent financial relief for low- and moderate-income households. Through December 2024, the EITC benefited 23 million workers with $64 billion distributed. The ACTC, for its part, extends support to families with minors, although its amount varies depending on income and number of dependents.
Why does the IRS delay refunds if I claimed EITC or ACTC?
It’s not because the IRS feels like it or wants to do it, deliberately. This is a federal law that requires the agency to retain refunds that include EITC or ACTC until mid-February. It is a measure that seeks to prevent possible fraud and give officers and investigators time to compare statements with salary data reported by employers. “The delay is not optional: it is a legal requirement, and we must comply with it,” explained an agency spokesperson who spoke with El Mira.
Initially, there was concern about possible delays due to personnel layoffs at the IRS in early 2024. However, the agency assured that the majority of refunds linked to these credits were issued since February 27. Taxpayers who filed electronic returns and opted for direct deposit would have received funds before March 3.
The schedule applies only if the returns were filed without errors and did not trigger additional reviews. Any inconsistencies – such as discrepancies in reported income versus employer reports – can lengthen the process by up to 60 days. The IRS recommends verifying data before sending documents to avoid mishaps.
Now, if you chose to receive your refund by paper check, it may take a little longer for the money to arrive, but it is highly likely that it will appear in your mailbox in the month of April.
Where’s my tax refund?
If in the reviews, the IRS detects inconsistencies, it will send letters to taxpayers to explain the steps to follow and what documents they must present to prove that they are telling the truth, or take the opportunity to correct any error that has manifested itself in the form of an inconsistency.
Taxpayers can monitor the status of their refunds using the Where’s My Refund? tool, available on IRS.gov and the IRS2Go app. The platform is updated daily and offers personalized information 24 hours after electronic submission. For paper submissions, the follow-up period is extended to four weeks.
Experts suggest filing early and retaining proof of income and deductible expenses. Those claiming EITC or ACTC must ensure that dependent information – such as Social Security numbers – matches federal records. “A common mistake is omitting to update civil statuses or legal custody,” warned a tax advisor with whom we also spoke.
