Houston, TX – Tax season has arrived, and many Americans are looking forward to receiving their tax refunds. However, for those claiming additional credits such as the child tax credit and the earned income tax credit, there may be delays in getting their refunds. According to the IRS, the average person typically receives their refund within 21 days of filing their tax return, but this timeline may be extended for those claiming certain credits.
Not everyone claiming the child tax credit will experience delays in receiving their tax refunds. The child tax credit is a tax break for families with qualifying children, providing up to $2,000 per child. However, only a portion of this amount is refundable, and this year the refundable portion is $1,600. The timing for receiving the additional child tax credit-related refunds is crucial, as the IRS has stated that most refunds should be available in bank accounts or on debit cards by February 27 for those who choose direct deposit.
The delay in processing these refunds is due to the IRS’s obligation to prevent fraudulent refunds, as mandated by law. This requires the agency to use extra time before issuing refunds related to the additional child tax credit and the earned income tax credit. Taxpayers can track the status of their refund by using the “Where’s My Refund?” tool, which will provide personalized refund dates. Additionally, for those eager to receive their refunds as quickly as possible, filing taxes early is recommended.
In terms of tax planning for the upcoming year, it’s important for individuals to understand the implications of claiming specific credits and the potential impact on their tax refunds. Seeking expert advice or utilizing free tax filing options can help individuals navigate the process more effectively and efficiently. It’s essential for taxpayers to stay informed about the latest updates and changes to tax laws in order to make well-informed decisions regarding their tax returns.