You have correctly filed your return and done electronically, but there is still a chance that your tax refunds will be delayed. Usually, tax refunds take around 21 days, if you choose direct deposit, to be paid out.
However, if you’re claiming an earned income tax credit (EITC) or an additional child tax credit (ACTC) as part of your return before mid-February, you may have to wait a bit longer.
The Earned Income Tax Credit (EITC) is the government’s largest refundable federal income tax credit for low- and middle-income workers. In 2021, nearly 25 million families received more than $60 billion in EITCs, with an average payment of $2,411. For the 2022 tax year, a family with three or more children can claim up to $6,935 – an increase of $560 in 2021.
While ACTC provides up to $2,000 per child in child tax credits (CTC), which apply as long as the children are below 17 years old at the end of the tax year.
Tax refunds may have a delayed arrival until mid-February. (Photo: Insider)
According to The U.S. Sun, the delay is attributed to the PATH Act law passed by Congress in 2015, which provides additional time to help the IRS prevent fraudulent refunds from being issued.
However, the IRS anticipates that most EITC/ACTC-related refunds will be available to taxpayers by February 28, 2023. Again, this is based on the assumption that taxpayers chose direct deposit and there are no other problems with their tax returns. Taxpayers can use the IRS Where’s My Refund tool to estimate when they can expect to receive their refund. The deadline to file your federal tax return in 2023 is April 18 unless you ask for an extension.
