Understanding the EITC/ACTC Timeline and When to Expect Your Money
Each filing season, millions of taxpayers who claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) face the same question:
Will the PATH Act delay my refund again this year?
The answer for the 2026 filing season remains the same as prior years.
Yes. The Protecting Americans from Tax Hikes (PATH) Act is still in effect, and it will continue to delay refunds for all taxpayers who claim EITC or ACTC, regardless of new tax laws or changes to the withholding system.
Below is a detailed, easy-to-follow explanation of what the PATH Act does, how it affects your 2026 refund, and the most likely dates you can expect your money.
What Is the PATH Act and Why Does It Delay Refunds?
Passed in 2015, the PATH Act requires the IRS to hold all refunds that include EITC or ACTC until mid-February each year. The purpose is to prevent early-season fraud and identity theft by giving the IRS more time to verify income and wage data.
Even if you file early, and even if your return is accepted right away, the IRS cannot release an EITC/ACTC-related refund before the mandated date.
The law applies every year unless changed by Congress. As of now, there is no indication that the PATH Act will be repealed or modified for the 2026 tax season.
Key PATH Act Rules for 2026
The same rules apply for tax year 2025 returns filed in 2026:
- The IRS must hold refunds for any return claiming EITC or ACTC.
- The IRS cannot release these refunds until after mid-February 2026.
- Even if the return is processed early, the refund will not be issued until the hold is lifted.
- Deposits typically begin to flow in late February or early March, depending on IRS processing cycles.
Expected PATH Act Refund Release Dates for 2026
Based on IRS historical patterns, early transcript cycles, and recent refund calendars, here is the most likely timeline for 2026:
Early Filing Period
January 15 – February 1, 2026
Taxpayers may file early, and many returns will be accepted by the IRS during the first week of the season.
Even though these returns may be processed normally, refunds cannot be released if EITC or ACTC is claimed.
PATH Act Hold Period
Through February 15, 2026
The IRS continues to process returns, but refund payments remain on hold.
Where’s My Refund? will usually show:
- Return Received
- Being Processed
- PATH Act message (if shown this year)
First Major Refund Release
Likely Starting February 21 on WMR
For the past several years, the IRS has released the first wave of EITC/ACTC refunds during the second half of February or the first business days of March.
Deposits often appear in bank accounts between:
- Friday, February 28
- Monday, March 2
- Tuesday, March 3
These dates can shift slightly depending on IRS processing volumes and weekends.
Second Wave of Refunds
March 7 – March 14, 2026
Filers accepted a little later, or returns requiring additional verification, usually receive refunds during the early to mid-March window.
What You Can Expect to See on “Where’s My Refund?”
The IRS updates WMR once per day. For PATH Act filers, you may see:
1. “Return Received”
This simply means the IRS has your return. PATH Act rules still apply.
2. “We Have Received Your Tax Return and It Is Being Processed”
This is the general processing message. It does not indicate your refund release date.
3. PATH Act Message (if used)
Some years the IRS displays a message stating the refund cannot be released before mid-February.
Other years, the IRS removes the PATH message and simply keeps the refund in processing until the release date.
4. “Refund Approved”
This is the milestone most taxpayers wait for.
It appears shortly before the refund is released and includes a direct deposit date.
Why PATH Act Refunds Take Longer to Process
Even though the law requires a blanket hold until mid-February, several behind-the-scenes checks occur during this period:
- Wage and income matching from employer W-2s
- Duplicate return checks
- Fraud screening
- Identity and dependent verification
- EITC/ACTC eligibility evaluations
This extra time ensures income and dependent information matches IRS data before refunds are released.
How to Avoid Delays After PATH Act Hold Lifts
Once February 15 passes, most EITC/ACTC refunds move normally through the system. However, some taxpayers experience additional delays due to:
- Missing or incorrect W-2s
- Identity verification issues
- Dependent disputes
- Refundable credit errors
- Math corrections
- IRS code 570 (further review)
To reduce the chance of delays:
- Ensure your W-2 data is accurate
- File electronically with direct deposit
- Confirm dependents match prior-year filings
- Avoid missing forms such as 1099s
- Respond promptly to any IRS letters
Why Even Early Filers Still Receive Late Refunds
Many taxpayers file on opening day and are accepted immediately, yet still do not see refunds until late February or early March.
This is normal.
The PATH Act does not care when a return is filed. Even if the IRS finishes processing in January, they will not release the refund early.
Filing early only ensures you enter the first release batch once the hold expires.
For the 2026 tax season, the PATH Act remains fully in effect. Taxpayers claiming the EITC or ACTC should continue to expect refunds beginning late February through early March, depending on IRS processing cycles.
Early filing, accurate information, and checking Where’s My Refund? daily after mid-February will help you track your refund as soon as it’s released.
The PATH Act delay is an annual requirement, and nothing in recent legislation has changed the mandatory refund hold for credit-eligible taxpayers.
