Millions of Americans may have to wait longer than usual for their federal tax refunds this year, largely because of extra processing for certain tax credits.
Through February 21, taxpayers can check projected deposit dates for EITC and ACTC refunds through the IRS Where’s My Refund tool. (Reuters)The Internal Revenue Service (IRS) has confirmed that taxpayers who claimed the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) will not receive refunds before March 2, 2026. Those who choose a mailed check instead of direct deposit may experience additional delays.
“These credits require additional verification to ensure the assumed income is accurate, check for errors and prevent potential fraud,” Alex Benny, financial literacy instructor at the University of Tennessee at Martin, told Newsweek. “The hold applies to the entire federal refund amount, not just the credit.”
Read more: IRS confirms $1,776 in payments to 1.5 million Americans tax-free: Who qualifies and why it matters
In the 2024 tax year, about 23.5 million workers and families received the EITC, Newsweek reported, totaling $68.5 billion, with an average refund of $2,916 per family.
Who is affected?The EITC is a refundable tax credit aimed at low- to moderate-income workers. Eligibility depends on earned income, family size and in some cases age.
Taxpayers without qualifying children must be between the ages of 25 and 64 and not full-time students.
ACTC is the refundable part of the Child Tax Credit. It helps parents who don’t pay enough tax to claim the full credit, although very low earners may not qualify.
Single parents and families with multiple children generally benefit.
How to Check Refund StatusThrough February 21, taxpayers can check projected deposit dates for EITC and ACTC refunds through the IRS Where’s My Refund tool.
Also Read: Why PayPal, Venmo, and Cash App Payments Could Affect Your 2025 Taxes
Users need their Social Security number, filing status and refund amount. The tool shows whether a return has been received, approved or sent, along with the expected mailing date.
Why delay is important9i Capital Group CEO Kevin Thompson told Newsweek: “About 20 million Americans could see delays due to the EITC. This verification process allows the IRS to confirm reported income before the funds are released, rather than trying to recover improper payments later.”
While the delay may surprise early filers, it does not reduce the amount of the refund. Thompson added, “It’s a refundable credit, so you should claim it even if you don’t owe any taxes. If eligible, you can still get a refund.”
