IRS Holding Tax Refund

The Internal Revenue Service is holding tax refunds of taxpayers that claimed the earned income tax credit or the additional child tax credit on their federal income tax returns. If you claimed either one of these tax credits, you’re more than likely to get your refund after March 1. 

This is because the IRS is required to hold tax refunds of taxpayers that claimed these credits by federal law. Additionally, you may receive a notice from the IRS requesting additional information about your tax return. If you receive a letter about the earned income tax credit or the additional child tax credit, you must provide further information to the Internal Revenue Service. Otherwise, you’ll see delays in your tax refund. 

Make sure to submit the required information as stated in the letter to get your refund as soon as possible.

PATH Act changes

There have been notable changes to some tax provisions with the PATH Act, also known as the Protecting Americans From Tax Hikes bill. This bill delays tax refunds if the return has the EITC or ACTC. Expect your tax refund to be approved by later than February if you’ve filed your taxes already. Whether you’ve submitted your tax return right after the tax season started or filing it now, you won’t get your refund right away. 

First, the IRS will process your tax refund then approve it. Once February 19 is passed, there is still a chance that you’ll wait for the IRS to send your tax refund. In most cases, however, you’ll get your tax refund after March 1. 

Get status updates on your tax refund

The best you can do, whether you claimed the earned income tax credit or the additional child tax credit or not, is to check the status of your tax refund. You can easily do this through the IRS2Go app or the Where’s My Refund tracker. In either case, you’ll need to enter your exact refund amount as shown on your federal income tax return and verify your identity. 

Once these are provided on the tool, you’ll see updates on your refund. Generally, you’ll see the following updates.

  • return received
  • refund approved
  • refund sent

If your refund status is stuck at refund approved for a while, then chances are you’re going to wait until February 19 for it to be issued, but even then, it might take longer. It’s best to check the refund status every now and then to keep up with the changes. Once the refund is sent, you’ll get it the same or the next day if it’s direct deposited, or about a week if you’ve chosen to get a paper check.

PATH Act Tax Refund

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