Millions of Americans look forward to receiving their tax refund early in the season, but claiming certain tax credits in 2026 could mean waiting longer than expected. While these credits can significantly increase your refund amount, they also trigger additional IRS review procedures that may slow down payment processing.
If you are planning to file your return soon, understanding how these two credits affect your refund timeline is essential.
Which Two Tax Credits Can Cause Delays
The two most common credits linked to refund delays are the Earned Income Tax Credit and the Additional Child Tax Credit.
Both credits are refundable, meaning you can receive money back even if you owe little or no tax. Because of their refundable nature, they are subject to enhanced fraud prevention checks.
The Internal Revenue Service is required by federal law to hold refunds that include these credits until additional verification procedures are completed.
Why the IRS Holds Refunds with These Credits
Refunds that include the Earned Income Tax Credit or Additional Child Tax Credit are often held for review to prevent improper payments and identity fraud.
Even if you file your tax return in late January, refunds claiming these credits may not be issued until mid or late February at the earliest.
This delay does not mean there is a problem with your return. It is part of a mandated review process designed to protect taxpayers and the federal system.
How Long Could the Delay Be in 2026
Most electronic filers without credit claims receive refunds within 21 days. However, returns that include these credits may experience a longer wait.
Once the refund is approved, it is sent for payment processing through the U.S. Department of the Treasury.
Bank posting times may add one to three additional business days after the IRS marks the refund as sent.
How to Track Your Refund Status
The IRS provides an official refund tracking tool that updates once your return is processed.
Refund status typically moves through three stages:
Return Received
Refund Approved
Refund Sent
If your status remains in the received stage longer than usual, it may simply be undergoing the required review.
Avoid filing duplicate returns, as this can create further delays.
Who Is Most Affected by These Delays
Taxpayers with lower to moderate income levels who qualify for the Earned Income Tax Credit are most affected.
Families claiming the Additional Child Tax Credit may also see extended processing times.
Although the delay can be frustrating, these credits often increase refund amounts significantly, making them valuable for eligible households.
Tips to Avoid Additional Refund Delays
To minimize waiting time:
File electronically instead of mailing paper returns
Double check all Social Security numbers and income details
Choose direct deposit for faster payment
Respond promptly to any IRS identity verification notices
Accurate filing helps ensure your refund moves through the system without unnecessary complications.
Conclusion
Claiming the Earned Income Tax Credit or Additional Child Tax Credit in 2026 can increase your refund, but it may also delay your payment due to mandatory IRS review procedures. These safeguards are designed to prevent fraud and protect taxpayers.
Understanding the timeline and using official tracking tools can help you plan ahead and avoid unnecessary worry.
Disclaimer: This article is for informational purposes only. Refund timing depends on individual tax circumstances and IRS processing conditions.