Here’s a frustrating truth for taxpayers: claiming certain credits can actually delay your refund. Yes, you read that right—helping yourself to money you’re entitled to might mean waiting longer to see it in your bank account. But here’s where it gets even more complicated: the Internal Revenue Service (IRS) has specifically flagged two tax credits that will hold up your refund until at least March 2, even if you file early and choose direct deposit. These are the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). And this is the part most people miss: the delay isn’t a glitch—it’s by design, thanks to the PATH Act of 2015, which requires the IRS to hold these refunds until mid-February to combat fraud by verifying income and identity.
For those who don’t claim these credits, the process is much smoother. You can expect your refund within 21 days of filing, provided you submit electronically, opt for direct deposit, and there are no other issues. But for the millions who rely on the EITC and ACTC, the wait is longer—and it’s worth noting that the IRS’s tracking tool, Where’s My Refund, won’t even show a projected deposit date until February 21 for these filers.
But here’s where it gets controversial: Is this delay a necessary evil to prevent fraud, or does it unfairly penalize low- to moderate-income families who depend on these credits? The EITC, for instance, is a lifeline for working Americans, with 23.5 million workers and families receiving nearly $68.5 billion last year alone. Yet, the IRS estimates that one in five eligible taxpayers doesn’t claim it—often because they’re unaware they qualify. The credit is refundable, meaning even if you don’t owe taxes, you could still get money back. The ACTC, meanwhile, offers up to $1,700 per child under 17, but it phases out for higher earners—single filers making over $200,000 or married couples over $400,000.
To see if you qualify for the EITC, you can use the IRS’s online calculator. For the ACTC, eligibility hinges on your child’s age and how long they lived with you during the tax year. But the bigger question remains: Should the IRS prioritize fraud prevention over timely refunds for those who need them most? Let us know what you think in the comments—is this delay justified, or does it go too far?
Leada Gore, a seasoned journalist with over 30 years of experience in Alabama journalism, covers breaking and trending news, with a focus on government, finances, and more for AL.com.
