Claiming These Two Credits Could Stall Your 2026 Refund, IRS Says

(MENAFN- Clever Dude) Last year, it was reported that roughly half (49% ) of Americans were dependent on their tax refund to make ends meet. For many people, that refund can help them pay off debt, get caught up on bills, or put some money in savings for inevitable emergencies. Because of this, many people rush to file early to get their refunds as soon as possible. But even if you double-check everything, some returns are automatically flagged for an extra review. Due to this, your money could be delayed for weeks, even months, without any mistake being made on your part. That said, claiming these two credits could stall your 2026 refund. Here's what you need to know and how you can be prepared.

1. Earned Income Tax Credit (EITC)

The Earned Income Tax Credit is one of the most valuable benefits for working families, but it's also one of the biggest sources of 2026 refund delays. Because the credit is frequently targeted by scammers, the IRS automatically holds EITC refunds until mid-February each year. Even if your return is perfect, the agency must run additional identity and income checks before releasing the money. Many taxpayers don't realize this delay is required by law, not caused by an error. If you rely on your refund for bills or savings goals, it's important to factor in this built-in waiting period.

2. Additional Child Tax Credit (ACTC)

The Additional Child Tax Credit is another benefit that triggers mandatory processing holds. Like the EITC, the ACTC is often misused by fraudulent filers, so the IRS applies extra verification steps to every return claiming it. These checks can create delays, especially if your income changed, you switched jobs, or your dependents' information doesn't match IRS records. Even small inconsistencies, like a misspelled name, can extend the wait. Families who depend on this credit should file early and ensure every detail is accurate to avoid unnecessary slowdowns.

Why These Credits Trigger Extra IRS Scrutiny

The IRS isn't trying to punish honest taxpayers; it's trying to stop billions in fraudulent refunds from going out the door. Credits like the EITC and ACTC are refundable, meaning the IRS pays you even if you owe nothing, which makes them prime targets for identity thieves.

To protect taxpayers, the agency uses advanced fraud filters that automatically flag returns for manual review. These filters are stricter in 2026 due to rising identity theft attempts and increased digital filing errors. Unfortunately, this means more legitimate filers will experience 2026 refund delays even when they've done everything right.

How to Avoid Getting Caught in a Verification Loop

While you can't bypass the legally required hold on EITC and ACTC refunds, you can reduce the risk of additional delays. The IRS says most slowdowns happen because of mismatched income, missing forms, or incorrect dependent information.

Filing electronically with direct deposit is the fastest way to get your refund moving through the system. Double-checking your W-2s, 1099s, and dependent details can prevent your return from being flagged for manual review. Taking these steps won't eliminate all refund delays, but they can keep your return from falling into the“problem pile.”

What to Expect If Your Refund Is Flagged

If your return is selected for review, the IRS may send you a letter requesting additional documents. These letters often ask for proof of income, residency, or dependent eligibility, especially when refundable credits are involved.

Responding quickly is the best way to minimize any refund delays, but even then, the review process can take several weeks. Many taxpayers panic when they receive an IRS notice, but most reviews are routine and not an accusation of wrongdoing. Just be organized and ready to respond quickly if they reach out to you.

Tips to Speed Up Your 2026 Refund

A few simple habits can make a big difference in how fast your refund arrives. Filing early gives the IRS more time to process your return before peak season hits. Using tax software or a professional can help catch errors that lead to delays.

Keeping copies of your income documents and prior-year returns makes it easier to respond if the IRS asks for verification. The smoother your filing process, the faster your refund is likely to land in your account.

Planning Ahead Can Save You Stress

Understanding how the IRS handles refundable credits can help you avoid frustration during the 2026 tax season. If you claim the EITC or ACTC, expect a delay and build it into your financial planning. These credits are incredibly valuable, but they come with extra scrutiny that slows down refunds for millions of families. Preparing early, filing accurately, and staying organized can help you navigate delays with confidence. A little foresight now can make tax season feel far less stressful.

Have you ever experienced a refund delay because of a tax credit? Share your story in the comments and help other readers prepare for the 2026 filing season.

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