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What is the PATH Act and how does it delay your tax refund?

Reviewed by Mary Sandomir, CPA September 2026

Short answer

The Protecting Americans from Tax Hikes (PATH) Act is a federal law that forces the IRS to hold your entire tax refund, not just the portion tied to a credit, if your return claims the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). The hold runs until at least February 15 each year, so the IRS can match your reported income against employer records. Refunds claiming either credit typically start moving in mid-to-late February and arrive two to three weeks later.

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What the PATH Act actually does

The PATH Act passed in 2015 to close a fraud gap: filing early, before the real taxpayer could file, and collecting a refund before anyone noticed. The EITC and ACTC are refundable, meaning they can pay out more than you paid in taxes, making them frequent fraud targets.

Under the law, no part of your refund can go out before February 15 if either credit is claimed, giving the IRS time to cross-check your reported wages against W-2 and 1099 forms your employer already filed. The same law also moved employers’ filing deadline up to January 31, so the IRS has your wage data in hand to run that match before any refund goes out.

Which credits trigger the refund hold

CreditWhat it isEffect on your refund
Earned Income Tax Credit (EITC)Refundable credit for low- to moderate-income workers; up to $8,231 for 2026 ($8,046 for 2025) with three-plus childrenRefund held until at least Feb. 15
Additional Child Tax Credit (ACTC)Refundable portion of the Child Tax Credit; up to $1,700 per qualifying child for 2025 and 2026Refund held until at least Feb. 15

Claiming both credits triggers only one hold, not two.

The refund timeline in a typical year from filing to deposit

MilestoneTypical timing
IRS filing season opensLate January
PATH Act hold liftsFebruary 15
Where’s My Refund updates for EITC/ACTC filersAround February 21
Most direct-deposit refunds arriveFirst week of March

Filing earlier doesn’t move up your refund if you claim the EITC or ACTC. The calendar sets the earliest possible release. These are IRS projections that may shift year to year and assume e-file, direct deposit, and no issues.

How to track your refund during the hold

Check your status using Where’s My Refund or the IRS2Go app, starting about 48 hours after e-filing. Both update once a day. During the hold, the tool shows a general processing message; once it lifts, it shows a specific status and, eventually, a direct deposit date.

Common mistakes that delay refunds further

  • An incorrect Social Security number for you, your spouse, or a dependent
  • Reported income that doesn’t match the W-2 or 1099 forms already filed
  • Errors on Schedule 8812, used to calculate the Additional Child Tax Credit
  • A typo in your bank account or routing number for direct deposit

Fixing these before you file avoids further delays.

When is the EITC refund date? When Will The IRS Issue EITC Refunds? Why is my tax refund delayed? How long does it take to get a tax refund? What is the earned income tax credit? What is the Additional Child Tax Credit?