Especially Early Filers & Families Expecting Refundable Credits
Every year, millions of taxpayers hope their early tax refund will help cover holiday expenses, post-Christmas bills, and New Year budgets. But as the holiday season approaches, the IRS is once again warning taxpayers to expect delays—especially those claiming certain refundable tax credits.
Here’s what causes the slowdown, who’s affected, and what you should know before filing early next year.
Why Refunds Slow Down Going Into the New Year
The IRS spends the end of the calendar year preparing for the upcoming filing season:
- updating systems,
- refreshing fraud filters,
- verifying identity tools,
- preparing software,
- updating credit calculations,
- and implementing new IRS security controls.
During this time, refunds generally don’t move as fast as people expect, especially in January and early February.
Even perfectly accurate returns can still sit in processing status longer than usual simply because IRS systems are transitioning.
The PATH Act Creates Built-In Delays
A large number of taxpayers receive refundable credits like:
- Earned Income Tax Credit (EITC)
- Additional Child Tax Credit (ACTC)
Under the PATH Act, the IRS is required to delay issuing those refunds until mid-February—no matter how early you file.
This affects millions of families every year.
So even if you file the moment IRS opens filing season, your refund cannot be released until Congress says so.
Why the IRS Is Reminding Taxpayers Now
Because many people plan holiday budgets around expected refunds, the IRS typically issues reminders late in the year, including warnings that:
- no refunds will be issued before IRS officially opens filing season,
- PATH Act credits will be delayed,
- refund approvals won’t speed up early payments,
- and taxpayers should expect longer processing times in January and February.
The IRS doesn’t want taxpayers depending on refund money that legally cannot arrive early.
Early Filing Doesn’t Mean Early Refund
This is one of the most common misunderstandings.
Even if you:
- file early,
- e-file,
- or are accepted day one…
You may still wait weeks for approval and funding.
The IRS simply cannot release PATH Act refunds until allowed by law.
And holidays don’t speed anything up—they slow things down.
Who Needs to Pay Close Attention
Taxpayers who typically rely on their refund for:
- holiday expenses,
- New Year bills,
- rent,
- childcare,
- debt,
- or cost-of-living support,
…should prepare for the fact that refunds may not arrive in January—even if you file immediately.
The earliest PATH Act refunds usually appear in late February.
What to Expect on Where’s My Refund
During this period you may see:
- “Your return is being processed”
- “We have received your tax return”
- or no updates for several weeks
WMR may not show significant movement until mid-to-late February.
Transcripts often show delays or “hold” codes until the IRS can post your actual refund release date.
What You Can Do Right Now
Don’t rely on January money
Count on February instead.
Prepare documents ahead of time
So you’re ready day-one of filing season.
Make sure income info is accurate
Filing with mistakes triggers even more delays.
Expect slower movement during holidays
IRS staff, banks, and US Treasury systems also operate on holiday schedules.
The holidays might make us all wish refunds came faster—but the IRS is reminding taxpayers early:
Expect delays.
Don’t depend on early refund money.
PATH Act rules control the timeline—not filing dates.
As frustrating as waiting can be, preparing ahead helps avoid financial stress when refund season hits.
