Refund Delays for Those Claiming EITC and ACTC (2024)

FAQs

How long will refunds take for EITC and ACTC filers? ›

If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you can expect to get your refund by February 27 if you filed online, chose to get the refund by direct deposit and if there were no issues with your return. Some taxpayers may see their refunds a few days earlier.

The IRS expects most EITC and ACTC related refunds to be available in taxpayer bank accounts or on debit cards by Feb. 27, 2024, if the taxpayer chose direct deposit and there are no other issues with the tax return.

Why we hold your refund. By law, we can't issue EITC or ACTC refunds before mid-February. This includes your entire refund, not just the part that's related to the credit you claimed on your tax return. If you claim the EITC or ACTC, we may need more information from you about your return.

Most errors happen because the child you claim doesn't meet the qualification rules: Relationship: Your child must be related to you. Residency: Your child must live in the same home as you for more than half the tax year. Age: Your child's age and student or disability status will affect if they qualify.

The IRS expects the earliest Earned Income Tax Credit and Additional Child Tax Credit related refunds to be available in taxpayer bank accounts or on debit cards by February 27 if you chose direct deposit and there are no other issues with the tax return.

If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

File now to secure your credit and choose direct deposit for your fastest refund. According to the IRS, most refunds will be issued in less than 21 days after the return has been accepted.

The IRS says that tax returns can be delayed for the following reasons: It was sent by mail. It contains errors or is incomplete. It needs further review.

What happens after I successfully verify? We'll process your tax return. It may take up to 9 weeks to receive your refund or credit any overpayment to your account.

The rates apply to both overpayments and underpayments, meaning if you owe taxes or if the IRS owes you a refund. Generally, the interest rates fluctuate from 3% - 8%.

What disqualifies you from earned income credit? ›

Investment Income - If you have investment income of more than $11,000 in 2023 or 2024, you will not be eligible for the EIC. Investment income includes things like interest, dividends, and capital gains. 3. Foreign Income - If you have foreign earned income, you may not be eligible for the EIC.

Tax Topic 152 generally indicates that the IRS has acknowledged receipt of the taxpayer's tax return and is processing it. It doesn't provide specific information about the status of the refund but serves as a general notification that the return is being reviewed and processed.

The ACTC is not some other credit or extra credit, but an amount families can claim if the CTC exceeds their income tax liability. Meaning, if the amount from the CTC exceeds the amount of tax you owe the IRS, or your taxes go to zero from other benefits, you might be able to claim the ACTC.

The maximum amount of CTC per qualifying child is $2,000. The refundable part of the credit, ACTC, is worth up to $1,600 for each qualifying child. A qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).

Your income is too low.

That is, part of the CTC may be on line 28 of form 1040 (2021- 2023) instead of line 19. The ACTC is calculated on form 8812 and is basically 15% of your earned income over $2500. The ACTC is a maximum of $1600 (2023) ($1500 for 2022) per child, not $2000.

Certain tax credits: The IRS can't legally issue refunds for certain tax credits until mid-February. If you claimed the Earned Income Tax Credit or Additional Child Tax Credit, even if you file your return early, you shouldn't expect to receive it until the second half of February.

- You can start checking on the status of your return sooner - within 36 hours after you file your e-filed return or 4 weeks after a mailed paper return. It's Up-to Date! - It's updated every 24 hours - usually overnight -- so you only need to check once a day. There's no need to call IRS unless Where's My Refund?

You'll need to check your 1040 form to know if you've claimed either or both of the credits. It'll be on Earned Income Tax Credit (EITC) line 27, Additional Child Tax Credit (ACTC) line 28.