Tax season is here, and if you’re expecting a refund, you might be wondering how long it will take to arrive. Typically, the IRS issues most refunds within 21 days of filing, but if you’ve claimed the Additional Child Tax Credit (ACTC), you might experience a delay.
This is due to legal protections aimed at preventing fraud and improper payments.
So, what exactly is the ACTC, who qualifies, and when can you expect your refund? Let’s break it down.
ACTC
The Additional Child Tax Credit (ACTC) is a refundable credit that helps families reduce their tax liability and, in some cases, receive a refund. It allows taxpayers to claim up to $1,600 of the $2,000 Child Tax Credit (CTC) per qualifying child as a refund if their tax liability is reduced to zero.
Unlike the standard CTC, which only reduces the amount you owe, the ACTC can put money back into your pocket even if you have no tax bill. To claim this credit, you must first determine eligibility for the regular Child Tax Credit using the IRS worksheet. If eligible for an additional refund, you must complete Schedule 8812 and attach it to your tax return.
Eligibility
To qualify for the ACTC, you must meet several criteria related to your dependent child and income:
- Age Requirement – The child must be under 17 years old by the end of the tax year.
- Relationship – The child must be your son, daughter, stepchild, foster child, brother, sister, half-sibling, or a descendant of any of these (such as a grandchild or niece/nephew).
- Residency – The child must have lived with you for more than half of the year.
- Income Limits – The credit starts to phase out at $200,000 for single filers and $400,000 for joint filers.
- Taxpayer Identification – Both you and your child must have a valid Social Security number (SSN).
Refund Timeline
Even if you file early, the IRS cannot issue ACTC refunds before mid-February due to the Protecting Americans from Tax Hikes (PATH) Act. This law aims to reduce fraud by giving the IRS more time to verify claims.
If you e-filed and selected direct deposit, and there are no errors in your return, you can expect your refund by March 3. However, the “Where’s My Refund?” tool on the IRS website is the best way to track your exact refund date.
Here’s a general timeline for ACTC refunds:
| Filing Date | Expected Refund Date (if no issues) |
|---|---|
| Early January | Mid-to-late February |
| Mid-January | Late February to early March |
| Late January | Early March |
| February | Mid-to-late March |
Tracking Your Refund
Want to check the status of your refund? The IRS provides a tool called “Where’s My Refund?” that updates daily. You’ll need:
- Your Social Security number
- Your filing status
- Your exact refund amount
Keep in mind that paper returns take longer to process, so filing electronically is your best bet for a faster refund.
Final Thoughts
If you’re claiming the Additional Child Tax Credit, patience is key. While most refunds arrive within 21 days, ACTC-related refunds take longer due to anti-fraud measures.
By filing early, ensuring accuracy, and opting for direct deposit, you can minimize delays. And remember, the “Where’s My Refund?” tool is your best friend when it comes to tracking your money!
FAQs
Why is my refund delayed?
If you claimed the ACTC, the IRS cannot issue refunds before mid-February.
How much is the ACTC refund?
Eligible taxpayers can receive up to $1,600 per qualifying child in 2025.
When will I get my refund?
If filed correctly, expect it by March 3 if using direct deposit.
How can I check my refund status?
Use the IRS ‘Where’s My Refund?’ tool for real-time updates.
Do I need to file extra forms for ACTC?
Yes, you must complete Schedule 8812 when claiming the ACTC.
