Many Americans file their tax returns early each year hoping to receive a large refund as quickly as possible. For some families, that refund helps cover bills, pay down debt, or build savings. However, the Internal Revenue Service has warned that certain taxpayers may face delays in receiving their refunds if they claim two specific tax credits.

The IRS has confirmed that refunds for taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit will not be released until at least mid-February. This delay applies even if the taxpayer files their return as soon as the filing season opens. The rule is not new, but many filers are surprised by it each year.

Why the IRS Delays Refunds for These Credits

The delay is required under a federal law known as the Protecting Americans from Tax Hikes Act, often called the PATH Act. This law was passed in 2015 to reduce tax fraud and identity theft. Over the years, criminals have tried to steal refunds by filing fake tax returns using stolen personal information. Many of these fraudulent returns claimed refundable tax credits such as the Earned Income Tax Credit and the Additional Child Tax Credit.

To combat this problem, the PATH Act requires the IRS to hold refunds for returns that claim these credits until after February 15. This waiting period gives the agency more time to verify information and prevent fraudulent payments from being issued.

Even if you file your return in late January, the IRS cannot legally release your refund before the required date if your return includes either of these credits. The delay affects the entire refund amount, not just the portion linked to the credits.

How Long Will the Delay Last?

Although refunds are held until after February 15, most eligible taxpayers can expect to receive their money by early March if everything on their return is accurate. In many cases, refunds may arrive as early as March 2 if certain steps are followed.

Filing your tax return electronically, choosing direct deposit, and ensuring that all information is correct can help speed up processing once the hold is lifted. Paper returns or errors on a return can cause additional delays beyond the mid-February hold period.

The IRS encourages taxpayers to use its online tool called “Where’s My Refund?” to check the status of their refund. This tool typically provides updated information in mid- to late February for those affected by the PATH Act delay.

What Is the Earned Income Tax Credit?

The Earned Income Tax Credit is designed to help low- to moderate-income workers and families reduce their tax burden. It is a refundable credit, which means that even if a taxpayer does not owe taxes, they may still receive money back as a refund.

To qualify for the EITC, a taxpayer must meet certain income limits and have earned income from working. Investment income must be below $11,950. Income limits also vary depending on marital status and the number of qualifying children.

For example, a single person with no children must earn $19,104 or less to qualify. A married couple filing jointly with three or more children must have income of $68,675 or less. The maximum credit for taxpayers with three or more qualifying children can reach $8,046 for tax year 2025. The exact amount depends on income level and family size.

Because the credit can result in a large refund, it has historically been a target for fraud. That is one reason the IRS carefully reviews returns that claim it.

What Is the Additional Child Tax Credit?

The Additional Child Tax Credit is the refundable portion of the Child Tax Credit. While the Child Tax Credit helps reduce the amount of taxes owed, the additional portion allows eligible families to receive a refund if the credit exceeds their tax liability.

The refundable amount can be up to $1,700 per qualifying child. To claim the ACTC, a taxpayer must have at least $2,500 in earned income during the tax year.

Like the Earned Income Tax Credit, the Additional Child Tax Credit is intended to provide financial support to working families. Because it involves refundable payments, it is also subject to the mandatory mid-February refund hold under the PATH Act.

Why Filing Still Matters Even If You Don’t Owe Taxes

Some individuals, such as Social Security recipients or people with very low income, may not be required to file a tax return. However, tax experts suggest that filing a return can still be a wise decision.

When someone does not file, it may create an opportunity for identity thieves to submit a fraudulent return using that person’s information. Filing a return, even if no taxes are owed, can help protect against this type of fraud. It establishes an official record with the IRS and reduces the risk of someone else claiming a refund in your name.

Tips to Avoid Additional Delays

Although the mid-February hold cannot be avoided if you claim the EITC or ACTC, there are steps you can take to prevent further delays. Filing electronically is generally faster than mailing a paper return. Choosing direct deposit instead of a paper check also speeds up delivery.

Accuracy is equally important. Double-check names, Social Security numbers, income amounts, and bank account details before submitting your return. Even small mistakes can lead to processing delays or additional review by the IRS.

The 2026 tax filing season began on January 26 and will close on April 15 for most taxpayers. Filing early can still be beneficial, but those claiming these two credits should plan for the legally required waiting period.

Understanding the Bigger Picture

While the delay may be frustrating, the purpose behind it is to protect taxpayers from fraud and identity theft. By giving the IRS extra time to verify returns, the government aims to ensure that refunds go to the correct individuals.

For families who rely on these credits, planning ahead is essential. Knowing that refunds will not be released before mid-February can help households budget more effectively and avoid financial surprises.

Disclaimer

This article is for informational purposes only and does not constitute tax or financial advice. Tax laws and IRS policies may change, and individual situations vary. Readers should consult a qualified tax professional or visit the official IRS website for guidance related to their specific circumstances.