Tax season is underway, and many taxpayers are eagerly awaiting updates about their refunds. If you’re claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), it’s essential to understand how the IRS “Where’s My Refund” tool operates under the Protecting Americans from Tax Hikes (PATH) Act.
Why Are EITC and ACTC Refunds Held?
The PATH Act, enacted to prevent tax fraud and identity theft, requires the IRS to hold refunds for taxpayers claiming the EITC and ACTC until February 15 each year. This delay allows the IRS to verify income and credit eligibility, reducing the risk of improper refunds.
For the 2025 tax filing season, February 15 falls on a Saturday, which impacts when refunds are released and when the “Where’s My Refund” tool updates for affected taxpayers.
When Will the IRS Release EITC and ACTC Refunds?
Although the IRS will begin processing held refunds starting Saturday, February 15, 2025, the release of funds to taxpayers will take additional time. Banks and financial institutions typically take a few business days to process deposits. As a result, most taxpayers claiming the EITC or ACTC can expect their refunds to be available in their accounts by late the following week, around February 20–21.
How Does the “Where’s My Refund” Tool Update?
The IRS “Where’s My Refund” tool provides daily updates for refund statuses. However, updates for taxpayers impacted by the PATH Act often follow a specific timeline:
- February 15, 2025 (Saturday): The IRS begins processing EITC and ACTC refunds but will not release them.
- February 22, 2025 (Saturday): For most taxpayers, the “Where’s My Refund” tool will reflect updated statuses indicating that their refunds have been approved and are on the way. This is due to the processing schedules and system updates, which generally occur in the early morning hours on Saturdays.
What Does This Mean for You?
If you’re claiming the EITC or ACTC:
- Don’t expect immediate updates: While the IRS starts processing refunds on February 15, your refund status in the “Where’s My Refund” tool may not update until February 22.
- Plan for delays: Even after the tool updates, actual deposit dates will vary based on your bank’s processing times.
- Check early on Saturdays: For the most accurate information, check the “Where’s My Refund” tool on February 22 or later, preferably in the early morning.
📅 When do YOU think the IRS “Where’s My Refund” tool will update for these refunds this year?
- Will it update on February 15, 2025, the date the IRS starts processing held refunds?
- Or will it wait until February 22, 2025, when most updates for PATH Act refunds are expected?
Drop your predictions in the comments below! Let’s see who gets it right. 🎯
Final Thoughts
The PATH Act ensures refunds are issued securely and accurately, even if it means waiting a bit longer. While the timeline can be frustrating, understanding how the system works can help you plan better for when your refund will arrive.
Have questions about the PATH Act or how the IRS processes refunds? Drop them in the comments below, and let’s discuss!
