What Is the PATH Act and Why Does It Delay Your Refund?
According to the IRS, more than $5.5 billion in tax fraud was identified in 2023 alone. To protect filers' identities and thwart fraud, the IRS and many states have implemented safeguards, including the Protecting Americans from Tax Hikes (PATH) Act.
The PATH Act, signed into law in December 2015, requires the IRS to hold refunds for any return claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until at least mid-February. If you claimed the EITC or ACTC, you can expect to get your refund by March 2.
By holding these refunds, the IRS has additional time to cross-check income, withholding, and dependent information before issuing payment.
Which Credits Trigger a PATH Act Refund Hold?
The PATH Act requires that the IRS not release refunds to taxpayers who claimed either the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until February 15 or later. For taxpayers not claiming EITC or ACTC credits, refunds will not be delayed.
After February 15, all refunds — with or without the EITC and ACTC credits — will be processed according to the tax refund schedule (usually within 21 days). The IRS has stated that this delay is necessary to ensure returns are scrutinized to combat identity theft and fraud.
For tax year 2025, the EITC is worth up to $8,046 for families with three or more qualifying children, with income limits ranging from $19,104 (single, no children) to $68,675 (married filing jointly, three children) and an investment income cap of $11,950.
The Child Tax Credit (CTC) is worth up to $2,200 per qualifying child for filers below the income threshold, with up to $1,700 available as a refundable portion of the ACTC.
| Credit | Maximum Value | PATH Act Hold? |
|---|---|---|
| Earned Income Tax Credit (EITC) | $8,046 (3+ qualifying children) | Yes |
| Additional Child Tax Credit (ACTC) | Up to $2,200 per qualifying child, subject to eligibility and refundability rules | Yes |
W-2 and 1099 Deadlines Under the PATH Act
The PATH Act also requires that businesses transmit all W-2, W-3, 1099, and 1096 forms no later than January 31. Asking businesses to expedite the provision of these forms gives the IRS more time to verify the information and combat fraud.
As a taxpayer, this means your W-2 and 1099 forms should be in your hands by January 31. If you have not received them by early February, contact your employer or the issuing institution.
How to Get Your Refund as Fast as the PATH Act Allows
To get your EITC or ACTC refund as quickly as the law allows:
- File electronically and choose direct deposit over a mailed check; paper returns are processed more slowly
- File early: errors discovered after mid-February can push your refund further out
- Double-check dependent SSNs; an ITIN will disqualify the ACTC claim
- Confirm your W-2 and 1099 information matches what your employer filed by January 31
- Use the IRS "Where's My Refund?" tool after mid-February to track your status
With E-file.com, you can file your federal return electronically, choose direct deposit, and get your EITC or ACTC refund as quickly as the IRS allows. Start your return today.
Frequently Asked Questions
Can You Speed Up a PATH Act Refund?
No, the mid-February hold is set by federal law and cannot be avoided. To ensure your refund arrives as quickly as possible, file online and choose direct deposit, file early, and file accurately, since errors on your return can delay your refund beyond the standard PATH Act timeline.
Does the PATH Act delay my entire refund or just the credit portion?
The PATH Act delays your entire refund, not just the EITC or ACTC portion. Even if most of your refund comes from withholding, the IRS holds the full amount until mid-February if your return includes either a credit.
When will I get my refund if I claimed the EITC or ACTC?
By law, the IRS cannot release EITC or ACTC refunds before mid-February. Filers who e-filed and chose direct deposit typically receive their refunds by early March, assuming no issues with the return. You can check your status using the IRS "Where's My Refund?" tool after mid-February.
Can families with ITINs still claim the Child Tax Credit?
Both the qualifying child and at least one parent or guardian must have a valid Social Security Number (SSN) to claim the full Child Tax Credit, including the refundable Additional Child Tax Credit (ACTC). An Individual Taxpayer Identification Number (ITIN) alone does not satisfy this requirement.