Understanding the PATH Act Delay and What It Means for Your Refund

Every tax season, millions of families depend on refunds tied to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). These refundable credits provide essential financial support for working families, but they also trigger one of the most common refund delays each year. Even when a tax return is filed perfectly and early, the IRS cannot release certain refunds until a specific point in the filing season.

Here is how refund timing works for EITC and ACTC and what to expect in the upcoming filing season.

PATH Act Requirements Cause a Mandatory Delay

Federal law requires the IRS to delay refunds involving:

• Earned Income Tax Credit
• Additional Child Tax Credit

This requirement is part of the PATH Act (Protecting Americans from Tax Hikes Act). The goal is to prevent fraudulent refund claims based on stolen Social Security numbers or false wage information.

Even if your return is fully accurate, the IRS cannot release your refund until the PATH Act hold is lifted.

Early Filing Does Not Speed Up Payment

Many early filers expect faster refunds, but under the PATH Act, these credits cannot be paid early. Filing early helps IRS acceptance, but it does not change the earliest possible payment timeline.

Even early accepted returns will often show no movement on Where’s My Refund until mid-February or later.

When EITC and ACTC Refunds Are Usually Released

Refunds involving these credits typically begin processing for release after mid-February, with deposits appearing for many taxpayers:

• late February
• early March

Exact timing varies depending on IRS processing volume and banking timelines.

Where’s My Refund Will Not Update Immediately

During the PATH Act period, Where’s My Refund may show limited updates or remain unchanged for weeks, even if your return is accepted. Refund codes usually appear closer to the release window.

Transcripts may show activity before WMR updates, especially codes related to refund approval or processing dates.

The IRS Uses Extra Verification Before Releasing Refunds

Because thieves target refundable credits, IRS screens these returns for:

• identity verification
• dependent eligibility
• wage matching
• suspicious filing patterns

These fraud filters protect legitimate taxpayers, but they also slow refund release for millions of households.

Banks and Prepaid Cards Can Add More Time

Even after the IRS releases a refund, banks or prepaid card providers may:

• hold deposits,
• verify identity,
• delay posting,
• or reject funds if information does not match.

Direct deposit is still fastest, but banking rules may add processing time.

Filing Early Still Helps in Other Ways

Even though refunds cannot be paid early, filing early can:

• reduce chances of identity theft,
• prevent fraudulent filings in your name,
• secure IRS acceptance before heavy volume hits,
• avoid last-minute errors and delays.

Early submission helps ensure faster movement once PATH holds are released.

Refund timing for Earned Income Tax Credit and Additional Child Tax Credit filers is controlled by federal law. Even early accepted returns cannot be released until mid-February or later. Understanding the PATH Act timeline helps set realistic expectations and reduces stress during refund season.