How Long Does It Take to Get Your Tax Refund If You Claim EITC or ACTC?

Are you wondering when you will receive your tax refund if you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC)? You are not alone. Many taxpayers who are eligible for these credits are eager to get their refunds as soon as possible. However, there are some factors that may affect the timing of your refund. In this blog post, we will explain what these factors are and how you can check the status of your refund online.

What are Earned Income Tax Credit and Additional Child Tax Credit?

EITC and ACTC are two tax credits that can reduce your tax liability and increase your refund. They are designed to help low- and moderate-income workers and families with children.

– EITC is a refundable credit that depends on your income, filing status, and number of qualifying children. The maximum amount of EITC for 2023 is $6,728 for taxpayers with three or more qualifying children.
– ACTC is a partially refundable credit that depends on the number of qualifying children under age 17. The maximum amount of ACTC for 2023 is $2,000 per child, of which up to $1,400 is refundable.

You can use the IRS EITC Assistant and the IRS Child Tax Credit and Credit for Other Dependents Worksheet to see if you qualify for these credits and how much you can claim.

Why Does Claiming EITC or ACTC Delay Your Refund?

According to the IRS, if you claim EITC or ACTC on your tax return, the IRS cannot issue your refund before mid-February. This is because of a law called the Protecting Americans from Tax Hikes (PATH) Act, which was enacted in 2015 to prevent fraud and identity theft involving these credits. The IRS needs more time to verify the accuracy and eligibility of the claims before releasing the refunds.

However, this does not mean that you will receive your refund by mid-February. It only means that the IRS will start processing your refund after that date. The actual date of your refund will depend on how you filed your tax return, whether you chose direct deposit or paper check, and whether there are any errors or issues with your return that require further review.

How Can You Check the Status of Your Refund?

The best way to check the status of your refund is to use the IRS Where’s My Refund? tool or the IRS2Go mobile app. You will need your Social Security number, filing status, and exact refund amount to access your information. You can start checking your refund status within 24 hours after the IRS acknowledges your e-filed return, or four weeks after you mail a paper return.

The IRS updates the refund status once a day, usually overnight. You will see one of the following messages:

– Return Received: This means that the IRS has received your return and is processing it.
– Refund Approved: This means that the IRS has approved your refund and is preparing to send it to you.
– Refund Sent: This means that the IRS has sent your refund to your bank or mailed your paper check.

The IRS says that most refunds are issued within 21 days of receiving your return, but some may take longer. If you claimed EITC or ACTC, you could expect your refund by February 27 or the first week of March, if there are no other issues with your return. However, this is only an estimate and not a guarantee. The IRS may need more time to review your return for accuracy and completeness, especially if you have a complex tax situation or if you are a victim of identity theft or fraud.

How Can You Speed Up Your Refund?

There are some things you can do to get your refund faster, such as:

– File your tax return electronically. E-filing is faster, safer, and more accurate than mailing a paper return.
– Choose direct deposit. Direct deposit is the fastest and most secure way to receive your refund. You can have your refund deposited into up to three accounts, such as your checking, savings, or retirement account. You can also use direct deposit to buy up to $5,000 in U.S. Series I Savings Bonds.
– File your return early. The sooner you file your return, the sooner you will get your refund. However, do not file your return before you have all the necessary documents and information, such as your W-2s, 1099s, and receipts. Filing an incomplete or incorrect return may cause delays or errors in your refund.
– Check your return for errors. Make sure that you enter your personal and financial information correctly on your return, such as your name, address, Social Security number, bank account number, and routing number. Double-check your calculations and make sure that you claim the right credits and deductions. Use the IRS Interactive Tax Assistant to find answers to common tax questions and scenarios.
– Track your refund status. Use the IRS Where’s My Refund? tool or the IRS2Go app to monitor your refund progress and see if there are any issues or notices that require your attention. If the IRS contacts you by mail, phone, or email, respond promptly and provide the requested information or documentation.

FAQs

Here are some frequently asked questions and answers about tax refunds and EITC and ACTC.

– Q: What is the difference between a tax refund and a tax return?
– A: A tax refund is the amount of money that the IRS sends you back if you paid more taxes than you owed. A tax return is the form that you file with the IRS to report your income, deductions, credits, and taxes.

– Q: What if I don’t receive my refund within 21 days?
– A: If you don’t receive your refund within 21 days, it may be because the IRS is reviewing your return for accuracy and eligibility, or because there are some errors or issues that need to be resolved. You can check the status of your refund online or call the IRS at 800-829-1954.

– Q: What if I receive a smaller or larger refund than I expected?
– A: If you receive a smaller or larger refund than you expected, it may be because the IRS made some adjustments to your return, such as correcting a math error, applying a penalty, or offsetting a debt. You should receive a notice from the IRS explaining the reason for the change. If you disagree with the change, you can contact the IRS or file an appeal.

– Q: What if I don’t receive my refund at all?
– A: If you don’t receive your refund at all, it may be because it was lost, stolen, or returned to the IRS. You can request a refund trace by calling the IRS at 800-829-1954 or by filling out Form 3911, Taxpayer Statement Regarding Refund. The IRS will investigate the status of your refund and issue a replacement if necessary.

– Q: What if I need my refund sooner than mid-February or March?
– A: If you need your refund sooner than mid-February or March, you may consider applying for a refund anticipation loan (RAL) or a refund anticipation check (RAC) from a bank, a tax preparer, or another financial institution. However, these options may charge high fees and interest rates, and they are not guaranteed to be approved or delivered on time. You may also look for other sources of financial assistance, such as local charities, nonprofits, or government agencies.

Conclusion

Getting your tax refund can be a rewarding and exciting experience, especially if you claimed EITC or ACTC. However, you may have to wait a little longer than usual to receive your refund if you claimed these credits. The IRS cannot issue your refund before mid-February, and you can expect your refund by the first week of March, if there are no other issues with your return.

You can check the status of your refund online or by using the IRS2Go app. You can also speed up your refund by filing your return electronically, choosing direct deposit, filing your return early, checking your return for errors, and tracking your refund status. We hope this blog post has helped you understand when to expect your refund and how to get it faster. If you have any questions or comments, please feel free to leave them below. And don’t forget to share this post with your friends and family who may benefit from this information. Thank you for reading and happy tax season!

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