For taxpayers who claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), the Internal Revenue Service (IRS) revised its guidance and suggestion guide.
Tax refund submission dates are a little later than for people who did not claim these tax credits because the agency claims that reimbursements associated with these advantages started processing in late February.
For households with low and moderate incomes, both loans provide financial help.
The EITC distributed $64 billion to 23 million workers through December 2024. Families with small children can receive assistance from the ACTC, albeit the amount varies based on the number of dependents and income.
If I claimed the ACTC or EITC, why does the IRS take so long to issue my refund?
The IRS isn’t doing it on purpose or because they feel like it. According to a federal law, the government must hold onto returns that contain ACTC or EITC until the middle of February.
In addition to giving officers and investigators time to match statements with wage data given by businesses, the move aims to prevent potential fraud. An agency official told, “The delay is not optional: it is a legal requirement and we must comply with it.”
The IRS’s early 2024 staff cutbacks raised first concerns about potential delays. The agency does guarantee, though, that most of the refunds associated with these credits had been sent out since February 27.
Funds would have been disbursed before to March 3 to taxpayers who chose direct deposit and submitted electronic forms.
Only if the taxes were submitted correctly and did not result in further reviews does the timetable apply.
The process may take up to 60 days longer if there are any irregularities, such as differences between employer reports and claimed income. To prevent errors, the IRS advises confirming information before submitting documents.
Although it might take a bit longer, it is very probable that the money will reach your inbox in April if you opted to get your refund via paper check.
My tax refund—where is it?
If the IRS finds discrepancies during the reviews, it will either repair any errors that have shown up as inconsistencies or write letters to taxpayers explaining the procedures to follow and the papers they need to provide to demonstrate that they are telling the truth.
Taxpayers can use the Where’s My Refund? function on IRS.gov and the IRS2Go app to track the status of their refunds.
The platform provides individualized information 24 hours after an internet entry and is updated every day. The follow-up period is extended to four weeks for submissions of papers.
Experts advise keeping records of your income and deductible expenses, as well as filing early.
Social Security numbers and other dependent information must match federal data for anyone claiming ACTC or EITC.
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