For those who were quick to file their tax returns this year, the IRS has already issued $13 billion in refunds. If you’ve claimed either the child tax credit or the earned income tax credit, you might still be awaiting your refund. Why the delay? By law, the IRS must wait until at least mid-February to begin processing and distributing credit funds.
Amidst the extensive coverage of the child tax credit this year—encompassing 15 states with their own credits and ongoing discussions in Congress regarding an expanded credit—we’ll outline when you can anticipate receiving your refund if you’re claiming a credit.
Understanding the IRS Child Tax Credit
The child tax credit and additional child tax credit are crucial components of tax relief designed to support families with qualifying children. The child tax credit offers families a valuable tax break, potentially providing up to $2,000 per eligible child. However, it’s important to note that this credit is only partially refundable. This means that if the credit exceeds the amount of taxes owed, only a portion of the remaining credit may be refunded to the taxpayer.
Enter the additional child tax credit—a pivotal aspect of the child tax credit framework. This component ensures that families can access the full benefits of the credit, even if they don’t owe enough in taxes to claim the entire amount. For the current tax year, the refundable portion of the child tax credit stands at $1,600, offering eligible families an opportunity to receive a substantial refund beyond their tax liability. This provision serves as a critical support mechanism for households with qualifying children, helping to alleviate financial burdens and promote economic stability.
Anticipating your Child Tax Credit refund timeline for this year
If you’re eagerly awaiting your child tax credit refund this year, the IRS has provided some insights into when you can expect to receive it. According to information shared with CNET, most refunds related to the child tax credit and earned income tax credit should be disbursed into bank accounts or onto debit cards by February 27th for taxpayers who have filed their returns and opted for direct deposit, provided there are no other issues with their tax return.
For those who have filed and claimed the credit, the IRS indicated to CNET that projected deposit dates should be visible as of February 17th by utilizing the agency’s Where’s My Refund tool. This tool can offer a helpful glimpse into when you might receive your anticipated refund.
The delay in issuing refunds, as explained by the IRS, stems from the agency’s obligation to refrain from issuing refunds involving the additional child tax credit (as well as the earned income tax credit) until mid-February. This mandated waiting period serves as a precautionary measure aimed at thwarting fraudulent refund claims, a priority for the IRS to ensure the integrity of the tax system.