So you’re probably celebrating your new tax refund, but you’re probably also wondering how long does it take to get a tax refund with earned income credit. And to be completely honest, it varies from person to person and from year to year as well. Generally, if you file early, you will receive your tax refund faster than those who file later in the season. However, there are ways we can help our refunds along.
For some people, getting a tax refund is the best part of Tax Day. In fact, the Internal Revenue Service (IRS) reports that more than 71 million people receive a federal income tax refund each year. It’s a whopping average of $2,800 per household. But not everyone’s so eager to get their refund back in their hands (or in an account, whichever way you prefer!) – and for good reason too!
If you’re waiting on your tax refund, it’s likely because you’ve claimed the earned income credit. It’s a federal credit that lowers the amount of taxes you owe, and it’s available to people who work but earn less than $54,884 per year. It can be as much as $6,431 for those who qualify.
If you have claimed this credit, expect to wait up to three weeks to receive your refund.
The amount of time it takes to get a tax refund with the Earned Income Credit depends on how quickly your employer files your W-2. If you file your taxes early, like in January or February, you may get your refund within a few weeks. If you file later in the year, it could take longer because there are more people filing returns and many of them are claiming the Earned Income Credit.
You’ll have to wait until after April 15th before you can expect to see your refund. Even though refunds are issued on a schedule set by the IRS, they don’t have any particular deadline for issuing them. So if you file early enough, you might get your money back before tax season is over!
When will I receive the money?
If you file electronically, most refunds are processed within 21 days after the receipt.
If you mail your paper return, it may take up to 4 weeks to get processed.
- Simply enter your Social Security Number, filing status, and the exact refund amount.
- You can check the status within 24 hours after IRS has received your e-filed tax return, or 4 weeks after mailing in your paper return.
- This information is updated once every 24 hours, usually overnight.
- Once IRS approves your EITC refund, you will see the actual refund date.
Do NOT call the IRS unless it has been:
- 21 days or more since you filed electronically;
- More than 6 weeks since you mailed your paper return; or
- The Where’s My Refund? tool directs you to contact them.
How long will my tax refund take?
The IRS sends over 9 out of 10 refunds to taxpayers in less than three weeks.
Unfortunately, a 21-day delivery of your tax refund isn’t guaranteed. There are a number of factors — including the choices you make when you file — that could impact how long it takes for you to receive your tax refund.
Find out what other factors affect the timing of your refund in 15 minutes or less with our new video series.
You get to choose how you want to receive any refund the IRS owes you. Here are your options:
- Direct deposit into your bank account (this is the fastest way to get your refund).
- Paper check sent through the mail.
- Debit card holding the value of the refund.
- Purchase up to $5,000 in U.S. Savings Bonds.
- Split your refund among up to three financial accounts in your name, including a traditional IRA, Roth IRA or SEP-IRA.
The delivery option you choose for your tax refund will affect how quickly you receive your funds. According to the IRS, the fastest way to receive your refund is to combine the direct deposit method with an electronically filed tax return.
Tax refund process
Below is an estimated breakdown of how soon you might expect to receive your tax refund, based on filing and delivery choices.
| Delivery type | Delivery time (date filed – receipt of tax refund) |
|---|---|
| E-file with direct deposit | 1-3 weeks |
| Paper file with direct deposit | 1-3 weeks |
| E-file with refund check in the mail | 6-8 weeks |
| Paper file with refund check in the mail | 6-8 weeks |
| Source: IRS |
2022 IRS refund schedule chart
The IRS started accepting 2021 tax returns on Jan. 24, 2022. The IRS has not yet released its 2022 refund schedule, but you can use the chart below to estimate when you may receive your tax refund via direct deposit or paper check.
| Date taxes accepted | Direct deposit sent | Paper check mailed |
|---|---|---|
| Jan. 24 – Jan. 31 | Feb. 7 | Feb. 14 |
| Feb. 6 – Feb. 7 | Feb. 14 | Feb. 21 |
| Feb. 8 – Feb. 14 | Feb. 21 | Feb. 28 |
| Feb. 15 – Feb. 21 | Feb. 28 | March 7 |
| Feb. 22 – Feb. 28 | March 7 | March 14 |
| March 1 – March 7 | March 14 | March 21 |
| March 8 – March 14 | March 21 | March 28 |
| March 15 – March 21 | March 28 | April 4 |
| March 22 – March 28 | April 4 | April 11 |
| March 29 – April 4 | April 11 | April 18 |
| April 5 – April 11 | April 18 | April 25 |
| April 12 – April 18 | April 25 | May 2 |
| April 19 – April 25 | May 2 | May 9 |
| April 26 – May 2 | May 9 | May 15 |
| May 3 – May 9 | May 15 | May 23 |
| May 10 – May 16 | May 23 | May 30 |
| May 17 – May 23 | May 30 | June 6 |
| May 24 – May 30 | June 6 | June 13 |
| May 31 – June 6 | June 13 | June 20 |
| June 7 – June 13 | June 20 | June 27 |
| June 14 – June 20 | June 27 | July 4 |
| June 21 – June 27 | July 4 | July 11 |
| June 28 – July 4 | July 11 | July 18 |
| July 5 – July 11 | July 18 | July 25 |
| July 12 – July 18 | July 25 | Aug. 1 |
| July 19 – July 25 | Aug. 1 | Aug. 8 |
| July 26 – Aug. 1 | Aug. 8 | Aug. 15 |
Other factors that could affect the timing of your refund
Additional factors could slow down the processing of your tax refund, such as errors, incomplete returns or fraud.
Taxpayers who claim the earned income tax credit (EITC) or the additional child tax credit (ACTC) may see additional delays because of special rules that require the IRS to hold their refunds until Feb. 27. You should also expect to wait longer for your refund if the IRS determines that your tax return needs further review.
Refunds for returns that have errors or that need special handling could take up to four months, according to the IRS. Tax returns that need special handling include those that have an incorrect amount for the Recovery Rebate Credit and some that claim the EITC or the ACTC. Delays also occur when the IRS suspects identity theft or fraud with any return.
Respond quickly if the IRS contacts you by mail for more information or to verify a return. A delay in responding will increase the wait time for your refund.
If you submitted an amended tax form, it may take more than 20 weeks to receive a refund due to processing delays related to the pandemic.
How to track the progress of your refund
The IRS has eliminated the guesswork of waiting for your tax refund by creating IRS2Go, an app that allows you to track the status of your return. You can also check the status of your refund with the “Where’s My Refund?” online portal.
Both tools provide personalized daily updates for taxpayers 24 hours after a return is e-filed or four weeks after the IRS has received a paper return. After inputting some basic information (i.e., your Social Security number or ITIN, filing status, and the exact amount of your refund), you can track your refund’s progress through three stages:
- Return received.
- Refund approved.
- Refund sent.
Once your refund reaches the third stage, you will need to wait for your financial institution to process a direct deposit or for a paper check to reach you through the mail.
What to do once your refund arrives
For many people, their IRS tax refund is the biggest check they receive all year, the IRS says. In anticipation of your windfall, it’s wise to have a plan for how you’re going to use your windfall. Deciding how to spend, save or invest the money in advance can help stop the shopping impulse from getting the best of you.
Your refund is yours to use how you see fit and can be used to help pay for day-to-day expenses or invested for long-term financial stability.
Irs child tax credit
The Child Tax Credit can significantly reduce your tax bill if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit
| Key Takeaways• The American Rescue Plan Act directed the IRS to issue advance payments of the 2021 Child Tax Credit during the 2021 year rather than having families wait until they prepare their 2021 taxes in 2022. • The amounts that families received during 2021 are reconciled to the amount that they are eligible for when they prepare their 2021 tax return in 2022. • Eligible families can receive the entire Child Tax Credit as a refund for 2021, even if they owe no federal income tax. • There are seven qualifying tests to determine eligibility for the Child Tax Credit: age, relationship, support, dependent status, citizenship, length of residency and family income. |
The American Rescue Plan Act of March 2021 is designed to assist in the United States’ recovery from the economic impact of the COVID-19 pandemic. A significant part of the plan includes the broadening of the Child Tax Credit to include more families, increase the financial benefits the credit provides, and to get these benefits into the hands of the eligible taxpayers quickly through the use of Advanced Monthly Payments in 2021.
Advance Child Tax Credit Payments
The expanded and newly-advanceable Child Tax Credit for 2021 was authorized by the American Rescue Plan Act, enacted in March of 2021. Part of this expansion is to advance a portion of the 2021 tax credit to families by sending them direct payments during 2021 rather than having them wait until they prepare their 2021 taxes in 2022.
Most families do not need to do anything to get their advance payment. Normally, the IRS will calculate the payment amount based on your 2020 tax return. Eligible families will receive advance payments, either by direct deposit or check.
These payments are an advance of your 2021 Child Tax Credit. The amount that you receive will be reconciled to the amount that you are eligible for when you prepare your 2021 tax return in 2022. Most families will receive about one-half of their tax credit through the advance payments. If you receive too little, you will be due an additional amount on your tax return. In the unlikely event that you receive too much, you might have to pay the excess back, depending on your income level.
Child Tax Credit Changes
The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 per child for qualifying children under the age of 6 and to $3,000 per child for qualifying children ages 6 through 17. Before 2021, the credit was worth up to $2,000 per eligible child, and children 17 years and older were not eligible for the credit.
The Child Tax Credit changes for 2021 have lower income limits than the original Child Tax Credit. Families that do not qualify for the credit using these lower income limits are still eligible for the $2,000 per child credit using the original Child Tax Credit income and phase-out amounts.
In addition, the entire credit is fully refundable for 2021. This means that eligible families can get it as a refund if they don’t owe any federal income tax.
Before this year, the refundable portion was limited to $1,400 per child and there were other requirements regarding earned income to obtain the refundable portion. There is not an earned income requirement for 2021.
To claim the Child Tax Credit, you must determine if your child is eligible. There are seven qualifying tests to consider: age, relationship, support, dependent status, citizenship, length of residency and family income. You and/or your child must pass all seven to claim this tax credit.
Top 7 Requirements for the Child Tax Credit:
1) Age test – To qualify, a child must have been under age 18 at the end of the year. Increased credit amounts are available for children under age 6 if certain family income tests are met.
2) Relationship test – The child must be your own child, a stepchild, or a foster child placed with you by a court or authorized agency. An adopted child is always treated as your own child. (“An adopted child” includes a child lawfully placed with you for legal adoption, even if that adoption is not final by the end of the tax year.) You can also claim your brother or sister, stepbrother, stepsister. And you can claim descendants of any of these qualifying people—such as your nieces, nephews and grandchildren—if they meet all the other tests.
3) Support test – To qualify, the child cannot have provided more than half of his or her own financial support during the tax year.
4) Dependent test – You must claim the child as a dependent on your tax return. Bear in mind that in order for you to claim a child as a dependent, your child has to:
- be your child (or adoptive or foster child), sibling, niece, nephew or grandchild;
- be under age 19, or under age 24 and a full-time student for at least five months of the year; or be permanently disabled, regardless of age;
- have lived with you for more than half the year; and
- have provided no more than half of their own support for the year.
5) Citizenship test – The child must be a U.S. citizen, a U.S. national or a U.S. resident alien. (For tax purposes, the term “U.S. national” refers to individuals who were born in American Samoa or in the Commonwealth of the Northern Mariana Islands.)
6) Residence test – The child must have lived with you for more than half of the tax year for which you claim the credit. There are important exceptions, however:
- A child who was born (or died) during the tax year is considered to have lived with you for the entire year.
- Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military services or detention in a juvenile facility, are counted as time the child lived with you.
- There are also some exceptions to the residency test for children of divorced or separated parents. For details, see the instructions for Form 1040.
7) Family income test
Income Limitation on the 2021 Child Tax Credit
The 2021 Child Tax Credit is reduced if your 2021 modified adjusted gross income (MAGI) is above certain amounts which are determined by your tax-filing status.
- Qualifying families with incomes less than $75,000 for single, $112,500 for head of household, or $150,000 for joint returns are eligible for the temporarily increased credit of $3,600 for children under 6 and $3,000 for children under 18. Above these income amounts, the credit is reduced by $50 for each $1,000 over these limits.
- For families with MAGI greater than the amounts eligible for the increased credit, the phaseout of the credit begins with $200,000 in income ($400,000 for married filing jointly) and the credit amount is $2,000 for all children under 18 at the end of the tax year.
- Your greatest available credit is based on the above method that provides you with the largest benefit.