The Internal Revenue Service (IRS) has shared new advice for taxpayers who claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). If you’re still waiting for your tax refund, and you claimed one of these credits, here’s what you need to know.
Both the EITC and ACTC are important tax benefits that offer financial help to low and moderate-income families, especially those with children. But refunds linked to these credits are often processed later than usual—and it’s not due to delays at the IRS, but because of a federal law meant to prevent fraud.
Why Is My Refund Delayed If I Claimed EITC or ACTC?
According to the IRS, this delay is not optional. It is required by law. Refunds that include EITC or ACTC must be held until at least mid-February. This delay gives the IRS enough time to check income records and compare them with employer reports. The idea is to reduce tax fraud and identity theft.
Even though some people were worried about delays this year due to IRS staff reductions, the agency has confirmed that most refunds tied to these credits were sent out from February 27 onwards.
If you filed your tax return electronically and chose direct deposit, you should have received your refund by March 3, as long as your return was error-free.
What If There Are Errors in My Tax Return?
If your return had mistakes or mismatched information, the refund process can take longer—up to 60 days more. For example, if your reported income doesn’t match your employer’s report or if there’s a problem with your dependents’ information, the IRS will hold your refund for review.
In such cases, the IRS will send you a letter explaining what the issue is and what documents you need to provide to correct it.
The best way to avoid these delays is to double-check your return before submitting it. Make sure:
- Your income is reported correctly
- Your dependents’ Social Security numbers match IRS records
- Your filing status is updated (especially after a marriage, divorce, or custody change)
When Will Paper Check Refunds Arrive?
If you didn’t choose direct deposit and opted to receive your refund by mail, it will take longer. However, the IRS says that most paper checks linked to EITC or ACTC refunds will likely arrive sometime in April 2025.
So if you’re waiting on a paper check, keep an eye on your mailbox throughout the month.
How to Track Your Refund
You can track the status of your refund using the IRS’s “Where’s My Refund?” tool. This is available:
If you filed electronically, you can start checking your status 24 hours later. If you mailed your return, you need to wait four weeks before the system updates.
Final Tips to Avoid Future Delays
To avoid issues next year, follow these simple steps:
- File your taxes early
- Keep proof of all income and expenses
- Update personal details, such as marital status or legal custody
- Always use the correct Social Security numbers for all dependents
Both the EITC and ACTC continue to be valuable tax credits, helping millions of families every year. In 2024 alone, the EITC supported 23 million workers with a total of $64 billion. Taking the time to submit your documents accurately can help you receive your refund faster and without problems.