The 2022 tax filing season is in full swing and early tax filers are anxiously awaiting to have their tax refunds deposited. While the IRS says it generally issues refunds within 21 days or less after receiving your return, those claiming the Child Tax Credit (CTC) may have to wait longer.
If you claimed the CTC on your 2021 tax return, here’s when you can expect to get it.
Tax filers who claim the CTC on taxes could be waiting until March to receive their refunds.
If you filed your 2021 tax return early hoping to receive your refund before all others, we regret to inform you that the IRS is holding onto refunds that include either the CTC or the Earned Income Tax Credit (EITC).
But don’t worry, there is still hope the IRS will release refunds a bit earlier than its projected March 1, 2022 date.
According to an IRS update, the agency says it will be releasing refunds that include the CTC on March 1, 2022, or later. However, the update also says that if you filed your taxes early and selected to receive your refund via direct deposit, you might receive your refund by February 19, 2022, or later.
Remember, financial institutions do take time to process tax refunds. Therefore, if the IRS says your refund will arrive on Feb. 19, it could take a few days to actually show up in your account.
If you want to keep track of your tax return’s progress, the best way to do this is through the IRS2Go app or by using the IRS Where’s My Refund tool. The IRS says it updates these applications once a day, usually overnight.
Why is the IRS holding onto tax refunds that include the CTC?
The IRS is required by law to hold onto tax refunds that claim the CTC or EITC until mid-February. This is because of the Protecting Americans from Tax Hikes (PATH Act) that made changes to the tax law.
Unfortunately, this means the IRS will hold onto your entire refund until your return has been checked for accuracy.
How much should my Child Tax Credit (CTC) be?
The Additional Child Tax Credit (ACTC) has been extended to millions of families with qualifying children. For the 2022 tax filing season, eligible individuals are able to claim $3,600 for each child under the age of 6 and $3,000 for kids between the ages of 6 and 17.
If you collected your first half of the CTC via the installments that were disbursed in 2021, then you’re entitled to collect the remaining half when you file your taxes. In the event you did not receive your CTC in advance or you had a child in 2021, you can claim the entire credit for each kid.
What can I do to get my tax refund quicker?
Although you can’t exactly speed up the delivery of your tax refund, there are some things you can do that could help the IRS process your return faster. This includes:
- Selecting direct deposit as your form of payment.
- Ensure your tax return is free from errors.
- Respond to any IRS requests for information promptly. If you find it difficult to get in touch with the IRS, consider these tips and tricks.