IRS Delays Refunds for EITC Claimants In Texas

Tax season has begun here in Texas, and many are eager to receive their refunds. However, there may be delays due to a popular tax credit, according to Valley Central. Daisy Villarreal, the owner of a health insurance and tax preparation business, explained that individuals must meet a certain income threshold to qualify for this credit, which often results in the largest refunds. The Earned Income Tax Credit (EITC) claimed 23 million taxpayers nationwide in 2023, including over 2.2 million in Texas alone.

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Refunds are Slow to Arrive for Those Claiming the Earned Income Tax Credit

The Protecting Americans from Tax Hikes Act, also known as the PATH Act, was enacted as part of the Affordable Care Act and expanded several tax credits for individuals, families, and businesses. It also introduced measures to prevent fraudulent claims. As part of the PATH Act, the IRS delays processing refunds for those claiming the EITC to allow for additional scrutiny of tax filings.

IRS Refund Process Lags for Taxpayers Using Earned Income Tax Credit

The IRS estimates that refunds for filers who claimed the EITC will not be processed until the end of the week. Taxpayers can expect direct deposit refunds to begin arriving in the first week of March. However, for those receiving paper checks, delays may extend further.