IRS alert: Why millions of Americans are facing tax refund delays in 2026

The IRS warns that federal tax refunds for millions could be delayed until at least March 2, 2026.

Millions of Americans may need to wait longer than usual for their federal tax refunds this year, largely due to extra processing for certain tax credits.

By February 21, taxpayers can check projected deposit dates for EITC and ACTC refunds via the IRS Where’s My Refund tool. (REUTERS)

The Internal Revenue Service (IRS) has confirmed that taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) will not receive refunds before March 2, 2026, at the earliest. Those opting for a mailed check instead of direct deposit may experience additional delays.

“These credits require additional verification to ensure reported income is accurate, check for errors, and prevent potential fraud,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. “The hold applies to the entire federal refund amount, not just the credit itself.”

In the 2024 tax year, around 23.5 million workers and families received the EITC, reported Newsweek, totaling roughly $68.5 billion, with an average refund of $2,916 per household.

Who is affected?

The EITC is a refundable tax credit aimed at low- to moderate-income workers. Eligibility depends on earned income, family size, and in some cases, age.

Taxpayers without qualifying children must be between 25 and 64 years old and not full-time students.

The ACTC is the refundable portion of the Child Tax Credit. It helps parents who do not owe enough taxes to claim the full credit, though very low earners may not qualify.

Single parents and families with multiple children typically benefit.

How to check refund status

By February 21, taxpayers can check projected deposit dates for EITC and ACTC refunds via the IRS Where’s My Refund tool.

Users need their Social Security number, filing status, and refund amount. The tool shows whether a return is received, approved, or sent, along with expected mailing dates.

Why the delay matters

Kevin Thompson, CEO of 9i Capital Group, told Newsweek: “Nearly 20 million Americans could see delays due to the EITC. This verification process allows the IRS to confirm reported income before releasing funds rather than trying to recover improper payments later.”

While the delay may surprise early filers, it does not reduce refund amounts. Thompson added, “It’s a refundable credit, so you should claim it even if you owe no taxes. If eligible, you can still receive money back.”