Don’t Let the PATH Act Catch You Off Guard!

Tax season is here, and if you’re claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the PATH Act might slow down your refund. Don’t worry—we’ve got the scoop to keep you in the know! Here’s everything you need to navigate those delays like a pro.

What’s the PATH Act, Anyway?

The Protecting Americans from Tax Hikes (PATH) Act, passed in 2015, is a federal law designed to slam the brakes on tax refund fraud. It tells the IRS to hold refunds for EITC or ACTC claims until mid-February to double-check for fraud or identity theft. This means your entire refund gets delayed—not just the credit portion!

Who’s Affected by the PATH Act?

If you claim EITC or ACTC, you’re in the delay zone. Other taxpayers? Your refunds should roll out as usual, no extra wait required.

When Do PATH Act Delays Start and End?

• Hold Starts: The IRS can’t issue EITC/ACTC refunds before February 15 (or the next business day if it’s a weekend/holiday).
• 2025 Key Date: Mark February 17, 2025, on your calendar—that’s when the hold lifts! Most refunds hit accounts by late February.

Why the Delay?

The IRS uses this extra time to verify your return and sniff out fraud. Refundable credits like EITC and ACTC are prime targets for scammers, so this protects you and the tax system.

How Long Will You Wait?

• Expect a delay of up to 6 weeks (or more) compared to non-EITC/ACTC filers.
• Once the hold lifts, most refunds process in about 21 days, but errors or extra reviews can stretch it out.

Filing After February 15?

Good news! If you file after the hold lifts (Feb 17, 2025), your return skips the PATH Act delay and processes normally.

Direct Deposit vs. Paper Check: Any Difference?

Nope! The PATH Act delay hits both equally. But once released, direct deposits land faster, while paper checks crawl through the mail.

Can You Track Your Refund During the Delay?

Absolutely! Starting Feb 17, 2025, the IRS’s “Where’s My Refund” tool or mobile app will light up with updates for EITC/ACTC filers. Check it regularly for the latest!

Top Tips While You Wait

Don’t just sit there—take charge!

• File early to get in line ASAP.
• Track your status using IRS tools after Feb 15.
• Respond fast to any IRS letters or requests.
• Plan ahead—budget for the wait if you count on that refund.

Need Cash Sooner?

Some tax preparers offer refund advance loans, but watch out! These come with fees and interest. Weigh the costs carefully before jumping in.

Does the PATH Act Stop Identity Theft?

It’s not a magic shield, but the extra time lets the IRS catch more fraudulent claims, keeping your refund safer.

Other Delays to Watch For

The PATH Act isn’t the only culprit. Watch out for:

• Errors on your return
• Identity verification requests
• Offsets for debts (like child support or loans)
• IRS backlogs