Child tax credits: What’s the earliest you could see tax credit up to $7,430?

Child tax credits: What’s the earliest you could see tax credit up to $7,430?

In general – barring mistakes or extra reviews – people can expect their tax refunds within 21 days, as long as they file electronically and use direct deposit.

And, while the IRS cautions people against relying on receiving a refund by a certain date, certain types of returns definitely will take longer to process with greater wait times for refunds.

Filers who claimed the Earned Income Tax Credit, or EITC, or Additional Child Tax Credit, ACTC, will not receive refunds sooner than Feb. 27, assuming they chose direct deposit and there are o other issues with their tax return. The mandatory delay is due to federal law requiring extra identity checks for EITC or ACTC filers.

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“By law, we can’t issue EITC or ACTC refunds before mid-February. This includes your entire refund, not just the part that’s related to the credit you claimed on your tax return,” the IRS said, adding “If you claim the EITC or ACTC, we may need more information from you about your return. If we do, we will send you a letter.”

The IRS updated info for EITC or ACTC filers last week with projected deposit dates now available on Where’s My Refund?

The EITC is a tax break for low to moderate earners with higher amounts available for those with children. According to the most recent IRS figures, about 23 million workers and families received about $57 billion in EITC for tax year 2022 with an average amount received of $2,541.

The IRS estimates about 20% of eligible taxpayers don’t claim the credit, however.

You can see more on EITC here.

The ACTC is the refundable portion of the Child Tax Credit and is claimed by families who owe less than their Child Tax Credit Amount. For 2023 filing year, ACTC is $1,600. You can see more on ACTC here.