Your IRS refund may be late if you claim these two tax credits — here’s why

Many Americans are waiting for big tax refunds this year from the Internal Revenue Service (IRS), which Donald Trump called the “largest tax refund season ever”. But the IRS says some people will get their refunds late if they claimed two tax credits — the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). The IRS clearly said refunds with these credits cannot be released before mid-February.

This delay rule comes from a 2015 law called the PATH Act, which was made to stop tax fraud and fake refund claims. Because of this law, refunds for people who claimed these credits cannot be sent before February 15, as per as reported by Daily Express US. The IRS also says the delay affects the entire refund amount, even the part not linked to those credits. Many taxpayers who claimed these credits may not get their refund until around March 2.

Refund delay reason

This delay is important because many people were expecting big refunds close to $4,000 this year, according to Daily Express US. The Trump administration has been promoting higher refunds due to new tax cuts under the One Big Beautiful Bill Act (OBBBA). The House Ways and Means Committee said Americans may see about a $1,000 increase in refunds this year. This increase happened because IRS tax withholding tables did not fully match the new tax cuts last year, so many people paid extra taxes during the year.


The new tax law includes big changes like no tax on tips, no tax on overtime, bigger deductions, child tax credits, and lower tax rates. The Tax Foundation released a calculator to help people estimate their refunds, according to the Tax Foundation. The group said taxpayers may see their after-tax income rise by about 5.4% on average this year. Lower-income earners will see smaller gains of around 2.6%, while middle-higher earners could see up to 6.3% increases.

What these credits do

The Earned Income Tax Credit (EITC) helps people who earn low or medium income. It reduces the amount of tax they have to pay. The credit amount can be different for each person. It depends on their income, if they have children, and if they have a disability. The Additional Child Tax Credit (ACTC) helps families get extra money back. This happens when their Child Tax Credit is more than the tax they owe. Under the new law, the Child Tax Credit has increased to $2,200 for each child. This amount will also increase slowly in the future because of inflation.

The ACTC can give up to $1,700 per child, but you must earn at least $2,500 to qualify, as reported by Daily Express US. The IRS says people can avoid delays by filing taxes online, choosing direct deposit, and making sure their forms have no mistakes. Normally, refunds come within about 21 days after filing if there are no issues.

Taxpayers can track their refund using the “Where’s My Refund” online tool 24 hours after filing electronically. For people who claimed EITC or ACTC, the tool will show status updates by February 21. However, even with updates, those refunds will likely arrive only around March 2, as per the IRS.

FAQs

Q1. Why is my IRS tax refund delayed in 2026?

Your refund may be late if you claimed the Earned Income Tax Credit or Additional Child Tax Credit because the Internal Revenue Service must hold these refunds until after mid-February to prevent fraud.

Q2. When will I get my refund if I claimed EITC or ACTC?

Most taxpayers who claimed these credits are expected to receive their refunds around early March if there are no problems with their tax return.