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For many households, a tax refund is a key moment to keep more cash in your wallet. But if you claim two widely used tax credits, your money may not arrive as quickly as you expect. The IRS has warned that certain returns must be held longer due to federal law. Understanding the timeline can help you plan ahead and avoid unnecessary stress.
Here's what to know before you file.
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What the EITC and ACTC tax credits are and how they work
The Earned Income Tax Credit (EITC) is a refundable credit designed to benefit low- to moderate-income workers, particularly those with children. Depending on income, filing status, and number of qualifying children, eligible taxpayers can receive thousands of dollars in credits. Because it is refundable, you can receive the credit even if you owe no federal income tax.
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. While the standard Child Tax Credit reduces your tax bill, the ACTC can result in a refund if the credit exceeds the taxes you owe. Like the EITC, it is intended to provide financial support to families with qualifying children.
Who qualifies for the EITC and ACTC
To qualify for the Earned Income Tax Credit, you must have earned income from work and keep your investment income below the annual IRS limit. You also need a valid Social Security number issued by the return due date, including extensions, and you must be a U.S. citizen or resident alien for the entire year. Taxpayers who file Form 2555 for foreign earned income cannot claim the credit, and additional rules apply if you are separated from your spouse and not filing jointly. There are also special eligibility provisions for certain groups, including military members, clergy, and individuals or family members with disabilities.
Eligibility for the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC) has its own set of requirements. You — and your spouse if filing jointly — must have a Social Security number valid for employment, and each qualifying child must also have a valid Social Security number issued before the return due date. For the 2025 tax year, a qualifying child generally must be under age 17 at year-end, live with you for more than half the year, be claimed as your dependent, and not provide more than half of their own financial support.
The CTC is worth up to $2,200 per qualifying child per qualifying child, while the refundable ACTC can provide up to $1,700 per child for eligible taxpayers with at least $2,500 in earned income, subject to income limits of $200,000 for single filers and $400,000 for joint filers.
Typical IRS tax refund processing times
In most cases, the IRS states that it processes refunds within 21 days of filing your return if there are no errors, missing information, or identity verification issues.
However, that general rule does not apply equally to every filer. Certain credits and return types are subject to additional review requirements under federal law. That is where timing can shift significantly.
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Why refunds that include the EITC or ACTC are delayed
Taxpayers who claim the EITC or ACTC are subject to a mandatory refund hold under the Protecting Americans from Tax Hikes (PATH) Act. The law requires the IRS to delay issuing refunds that include either credit until after mid-February, regardless of how early the return was filed. The agency cannot release even the portion of the refund unrelated to those credits.
The IRS has indicated that most affected taxpayers who file electronically, choose direct deposit, and have no errors or issues with their return should see their refund by March 2, although some taxpayers may see their refund earlier.
If the IRS identifies discrepancies, it may send a letter requesting clarification, which can extend the delay further. The hold is tied to fraud prevention measures designed to verify income and prevent improper payments.
Millions of US taxpayers could be affected by EITC and ACTC tax refund delays
These credits are not niche benefits — they impact millions of families. As of the end of December 2025, nearly 24 million eligible individuals and families claimed the EITC, according to IRS data. The program distributed approximately $70 billion in total benefits, with the average recipient receiving about $2,894 in 2024.
For many households, that refund represents a significant portion of annual income. A delay of several weeks can disrupt plans to pay bills, catch up on rent, or build savings. That is why understanding the timing rules is so important.
How to track your tax refund to be sure it arrives on time
Even if your refund is subject to the PATH Act hold, you can still monitor its status. The IRS "Where's My Refund?" tool typically updates once per day and allows taxpayers to check progress using their Social Security number, filing status, and refund amount. Refund tracking information may become visible by late February for many EITC and ACTC filers.
The tool should indicate whether your return has been received, approved, or sent. If you see a delay beyond the expected timeframe, the IRS may require additional information. While the timing may shift, the delay affects when you receive the money, not how much you are entitled to receive.
Bottom line
The IRS generally aims to process refunds within 21 days, but taxpayers claiming the EITC or ACTC face mandatory delays under the PATH Act. Because the agency must hold the entire refund until after mid-February, even early filers may wait until early March for payment.
With nearly 24 million families claiming the EITC alone, these delays are widespread — and predictable. Knowing the rules, filing electronically, and monitoring your status can help you plan ahead and eliminate some money stress during tax season.
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