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.
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!
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.
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.
Good news! If you file after the hold lifts (Feb 17, 2025), your return skips the PATH Act delay and processes normally.
Nope! The PATH Act delay hits both equally. But once released, direct deposits land faster, while paper checks crawl through the mail.
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!
Don’t just sit there—take charge!
Some tax preparers offer refund advance loans, but watch out! These come with fees and interest. Weigh the costs carefully before jumping in.
It’s not a magic shield, but the extra time lets the IRS catch more fraudulent claims, keeping your refund safer.
The PATH Act isn’t the only culprit. Watch out for:
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