IRS refunds: when will payment of the Earned Income Tax Credit begin after filing tax returns | United States | M.A.G.
The Internal Revenue Service (IRS) tax season will begin this January 27. For this reason, the agency shared important recommendations to ensure that returns are submitted correctly and thus expedite the process of any possible refund. One of the doubts of taxpayers is about the payment issuance time if one decides to request the Earned Income Tax Credit (Earned Income Tax Credit).
This credit helps low- or moderate-income workers and families receive a tax break. If you qualify, the EITC could reduce the taxes you owe and increase your refund. Remember that the amount of credit you can receive depends on whether you have children, dependents, are disabled, or meet other criteria.
First of all, you should know that the agency usually issues refunds in less than 21 calendar days if the tax return was submitted electronically. If you send by mail it will take longer because the IRS will take four weeks or more to process your return. The IRS explained that if the return has errors or is incomplete, it may take longer because it needs to be reviewed.
The Internal Revenue Service provides taxpayers with help to understand and comply with their tax responsibilities according to the tax law (Photo: EFE)
If you decide to order the Earned Income Tax Credit or the Child Tax Credit (CTC), the IRS refund will take longer to arrive. The agency said the law known as the PATH Act requires it to issue refunds for tax returns in which either or both credits were claimed after mid-February.. Keep this in mind if this is your first time applying.
It should be noted that the IRS commented that the best way to file your tax return is through its website (https://www.irs.gov/es/refunds). You will need to enter your Social Security number or ITIN (personal taxpayer identification number), the filing status for the purposes of the return you sent, and the exact amount of the refund on your return.
If you filed your tax return for tax year 2024 electronically, you can check the status 24 hours after sending it. Of course, if it is from previous years, the status will only be available three or four business days after having sent it to the IRS electronically. And if you sent it by mail, the status can be seen four weeks later.
If the declaration contains errors or is incomplete, it needs to be reviewed further (Photo: Freepik)
In order for you to claim the Earned Income Tax Credit, you must meet certain requirements to be eligible. These are:
- Have worked and earned income less than US$51,464 (US$57,414 if married and file a joint return).
- Your investment income was $10,000 or less during the 2021 tax year.
- You had a valid Social Security number on the due date of your 2021 tax return (including extensions).
- Have been a US citizen or resident alien throughout the year.
- Not having filed Form 2555 (related to foreign earned income).
The IRS gives two keys to speed up the sending of the federal tax refund: file your tax return electronically (if your adjusted gross income was less than US$84,000 in 2024 you can use the IRS Free File tool) and request that your possible refund is sent in a direct deposit to your bank account. Please ensure your account details are correct to avoid delays.
“The easiest, safest and fastest way to receive your refund is to file your tax return electronically and select the direct deposit option. According to the Treasury Department (…) refunds on paper checks are 16 times more likely to have problems, such as being lost, sent to the wrong address or stolen”, noted the IRS.
