EITC/ACTC Refunds: Is Yours Delayed? Get Updates Here

Are you anxiously awaiting your Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) refund? The Internal Revenue Service (IRS) has kicked off the 2024 tax season by dispatching tax refund returns to eager Americans. On Tuesday, February 27, the IRS began the process, and thousands of eligible taxpayers are poised to receive a little financial boost. But what’s the scoop on these refunds? Let’s dive in.

Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) Brief Overview

The EITC and ACTC are valuable tax credits that help millions of low-to-moderate-income families boost their tax refunds. However, the IRS is legally required to hold refunds for EITC/ACTC claimants until mid-February to combat fraud. This can cause temporary delays, but it doesn’t mean there’s a problem with your return.

Earned Income Tax Credit (EITC) and Extra Stimulus Checks

• Eligibility: Taxpayers who qualify for the IRS Earned Income Tax Credit (EITC) can claim up to $7,430. This refundable tax credit supplements wages and can significantly impact low to moderate-income families and individuals.
• Hidden Opportunity: Surprisingly, many eligible taxpayers remain unaware of this opportunity. While four out of five eligible taxpayers claim and receive the EITC, there are still “millions of workers” missing out on these refundable credits each year.
• Lifting People Out of Poverty: The EITC has a powerful impact. In 2018, it lifted 5.6 million people above the poverty line, including nearly 3 million children. Alongside the Child Tax Credit, it made poverty less severe for 17.5 million others.

Who Qualifies for EITC?

• Basic Requirements:
  • Worked and earned an income under $63,398.
  • Investment income below $11,000 in tax year 2023.
  • Valid Social Security number.
  • U.S. citizenship.
  • Not filing Form 2555 to report foreign income.
• Special Rules: Military members, clergy, and taxpayers with disabilities have additional qualifying criteria.
• Dependents Matter: The amount of EITC varies based on the number of dependents and tax filing status.
• File Your Tax Return: Families and individuals must still file a tax return to be considered eligible for the program.

What’s the Refund Amount?

• In the tax year 2022, about 23 million workers and families received approximately $57 billion in EITC.
• The average amount received by taxpayers was around $2,541.
• Eligible recipients for this year’s refund will receive a $7,430 check by mail.

4 Ways to Check Your EITC/ACTC Refund Status

1. “Where’s My Refund?” Tool: Visit the IRS website (https://www.irs.gov/refunds) or use the IRS2Go app for the most up-to-date info.
2. Call the IRS: Be prepared for potential wait times, but you can reach the IRS at 1-800-829-1040.
3. Create an IRS Account: Access detailed tax records and potential notices related to your refund.
4. Check with us: 

FAQs

• Why are EITC/ACTC refunds delayed? The PATH Act requires the delay to prevent fraudulent claims.
• When will I receive my refund? Most EITC/ACTC refunds should reach accounts by March 1st if there are no other issues.
• What does ‘still being processed’ mean? Your return is being reviewed; you may later receive a notice.
• What if there’s a problem with my return? The IRS will send a letter explaining the issue.
• Can I get my refund faster? Unfortunately, there’s no way to expedite EITC/ACTC refunds.

A Word of Caution

• Applying for the EITC may slightly delay the issuance of refunds. So, while not everyone will receive their stimulus on the same day, the financial relief is well worth the wait.

Remember, knowledge is power! If you’re eligible for the EITC, make sure to claim it and put those extra dollars to good use. For more details, visit the IRS website. 🌟📊💰