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EITC and CTC Refund Timing: The PATH Act Hold Explained

By GetTaxCalculator Editorial Team· Published 2026-09-10

If your tax return claims the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), the IRS is required by law to hold your entire refund until at least mid-February, regardless of when you file. This hold was established by the Protecting Americans from Tax Hikes (PATH) Act of 2015, codified at IRC Section 6402(m). It gives the IRS time to verify W-2 and 1099 information before releasing refunds. Most filers affected by the hold receive their refunds in late February or early March if they e-file with direct deposit. Below is a detailed explanation of how the hold works and what to expect.

What is the PATH Act?

The Protecting Americans from Tax Hikes (PATH) Act was signed into law on December 18, 2015 as part of the Consolidated Appropriations Act, 2016 (P.L. 114-113). Among many provisions, Section 201 of the PATH Act added IRC Section 6402(m), which prohibits the IRS from issuing refunds for returns claiming the EITC or ACTC (Additional Child Tax Credit) before February 15 of the year the return is filed.

The purpose of this provision is fraud prevention. Before the PATH Act, the IRS often issued refunds before employers were required to file W-2s (the employer deadline is January 31). This meant the IRS was sending refunds based on income and withholding information it could not yet verify. Fraudulent returns claiming fake income and inflated credits could receive refunds before the fraud was detected.

By holding refunds until mid-February, the IRS has time to receive and match employer-filed W-2 data against the amounts reported on tax returns. This has reduced improper EITC payments by billions of dollars since the law took effect.

Which credits trigger the hold?

The PATH Act hold applies to returns claiming either of these credits:

Earned Income Tax Credit (EITC): A refundable credit for low-to-moderate income workers. The credit amount depends on income, filing status, and number of qualifying children.
Additional Child Tax Credit (ACTC): The refundable portion of the Child Tax Credit. For the current tax year, the CTC provides up to $2,200 per qualifying child, of which up to $1,700 is refundable as the ACTC.

If your return claims either of these credits, the hold applies. It does not matter whether the credit is a large or small part of your total refund.

Your entire refund is held

An important detail that catches many filers off guard: the PATH Act hold applies to your entire refund, not just the portion attributable to the EITC or ACTC. If your total refund is $4,000 and $800 of that comes from the ACTC, the full $4,000 is held until mid-February.

You cannot split your return into a "non-EITC portion" and an "EITC portion" to receive part of your refund early. The IRS processes the return as a single unit and holds the entire refund until the verification period is complete.

Filing early does not speed it up

Some filers assume that filing on the first day of the filing season will get their refund faster. For EITC and CTC filers, this is not the case. Even if you file on January 27 (or whenever the season opens), the IRS cannot release your refund before February 15. The 21-day processing clock does not override the PATH Act hold.

That said, filing early is still beneficial. Returns filed early are processed and verified during the hold period, so when the hold lifts, your refund is ready to go. Filers who wait until March to file will experience the standard 21-day processing time on top of any remaining verification.

How long is the hold?

The statutory hold runs until February 15. However, the IRS has noted that refunds are typically not available in bank accounts until late February, even after the hold lifts. This is because:

The IRS needs processing time after the hold lifts to finalize and transmit refunds.
Banks may take one to five business days to post the direct deposit after receiving it from the IRS.
Weekends and bank holidays can push the actual deposit date later.

In practice, most early filers who e-filed with direct deposit and whose returns had no issues see refunds deposited in the last week of February.

When to expect your refund

Here is a general timeline for EITC/CTC filers who e-file with direct deposit:

Late January: Filing season opens. You submit your return.
Within 24-48 hours: IRS accepts your return. "Where's My Refund?" shows "Return Received."
January through mid-February: IRS processes and verifies your return during the PATH Act hold period.
Mid to late February: Hold lifts. IRS approves and transmits refunds.
Late February to early March: Refund deposited in your bank account.

If you filed a paper return or chose a paper check, add several additional weeks to this timeline. Paper returns take six to eight weeks to process, and the PATH Act hold adds to the front end of that window.

How to check your refund status

During the hold period, the "Where's My Refund?" tool at IRS.gov/refunds may show a message indicating that your refund is being held in accordance with the PATH Act. This is normal. The tool will update to show "Refund Approved" once the hold lifts and your refund has been approved for release.

To check your status, you need your Social Security number, filing status, and the exact refund amount from your return. For a detailed walkthrough, see our guide to checking your IRS refund status.

You can also use the IRS2Go mobile app, which provides the same refund tracking functionality as the website.

To estimate the refund amount before you file, use the tax refund estimator or the Child Tax Credit calculator.

Frequently Asked Questions

What is the PATH Act hold?

The Protecting Americans from Tax Hikes (PATH) Act of 2015 requires the IRS to hold refunds for returns claiming the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) until at least mid-February, giving the IRS time to verify income and withholding before issuing refunds.

Does the PATH Act hold apply to the entire refund?

Yes. If any portion of your refund is based on the EITC or CTC, the IRS holds the entire refund, not just the portion attributable to those credits.

When will I get my refund if I claim EITC or CTC?

If you e-file with direct deposit, the IRS typically begins releasing PATH Act-held refunds in late February. Most filers who filed early see deposits in the last week of February or early March.

Can I avoid the PATH Act hold?

No. The hold is required by law for any return claiming EITC or CTC. There is no way to opt out or request an exception.

Does the PATH Act hold apply if I only claim CTC, not EITC?

Yes. The hold applies to any return claiming either the EITC or the CTC (including the Additional Child Tax Credit). Claiming either credit triggers the hold.

Why was the PATH Act hold created?

The PATH Act hold was enacted to give the IRS additional time to match W-2 and 1099 data with tax returns before issuing refunds. This helps prevent fraudulent refund claims based on fabricated income or withholding.