IRS sets around March 2 target for EITC and ACTC refunds

Each tax season, clients who rely on refundable credits like the earned income tax credit (EITC) and the additional child tax credit (ACTC) look to their tax professionals for answers about refund timing. For 2026, the IRS has set clear expectations: most taxpayers who file early, claim the EITC or ACTC, and opt for direct deposit should see their refunds in their bank accounts or on debit cards around March 2, 2026, provided there are no issues with their returns. Some may see funds sooner, depending on their financial institution’s processing times.

Why EITC and ACTC refunds are delayed 

The March 2 date is tied to the Protecting Americans from Tax Hikes Act (PATH), which requires the IRS to hold refunds that include the EITC or ACTC until mid-February. This provision allows the IRS additional time to verify income, withholding and dependent information before releasing refunds.

Although the delay can frustrate taxpayers, it has become a predictable feature of the filing season. Returns that include these credits are not eligible for an earlier refund release, even if they are filed on the first day of the season.

What the IRS is saying about refund timing 

The IRS expects that most taxpayers who file electronically, claim EITC or ACTC, and select direct deposit will receive their refunds around March 2, 2026. Refunds may be deposited into bank accounts or loaded onto debit cards, depending on the option chosen at filing.

Some taxpayers may receive their refunds earlier, depending on how quickly their financial institution processes direct deposits. However, the IRS cautions that paper-filed returns and refunds issued by check will take additional time.

Using “Where’s My Refund?” to set expectations

The IRS’s “Where’s My Refund?” tool remains one of the most effective resources for managing client expectations. For early EITC and ACTC filers, the IRS expects the tool to begin showing projected deposit dates for most returns by Feb. 21, 2026.

Tax professionals should encourage clients to rely on this tool rather than daily check-ins with the office. Once a return shows as approved, the projected deposit date provides a reasonable window for when funds should arrive.

Common issues that can delay refunds

Even with a clear refund timeline, errors or inconsistencies can slow processing. Incorrect Social Security numbers for dependents, income that does not match Forms W-2, Wage and Tax Statement, or 1099-NEC, Nonemployee Compensation, or mistakes on Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents, can all trigger delays.

This is where careful preparation matters most. Verifying eligibility, confirming documentation, and reviewing dependent information before filing can help prevent avoidable problems. Due diligence requirements related to the EITC and child-related credits continue to be a major IRS enforcement focus.

Helping clients plan around their refunds

For many families, EITC and ACTC refunds represent a significant source of financial relief. Clients often rely on these funds to pay down debt, catch up on expenses or build emergency savings. Clear communication about timing helps clients plan responsibly and reduces pressure to pursue high-cost refund advance products.

Encouraging electronic filing and direct deposit remains the best way to ensure the fastest possible refund once the IRS releases it.

A timely reminder for tax pros

As refund questions increase, proactive education can make a noticeable difference. Explaining the PATH Act delay, sharing realistic timelines, and pointing clients to IRS tools can ease frustration and reinforce confidence in your practice.

For tax professionals looking to deepen their understanding of child-related credits, NATP's upcoming Calculating Child Tax Credits Webinar on Feb. 10, 2026, offers practical guidance. The session covers eligibility for the child tax credit, additional child tax credit, and other dependent credit, with a focus on properly preparing Schedule 8812 to help maximize tax benefits for families.