When Will The Child Tax Credit Be Worth Up To $7,430?

When Will The Child Tax Credit Be Worth Up To $7,430

The IRS changes information about tax refunds for 2023

In 2023, the Internal Revenue Service (IRS) changed the rules for tax refunds. People who file their taxes online and use direct deposit should get their refunds within 21 days, as long as there are no mistakes and the documents don’t need to be looked over again.

But some returns may take longer to handle, which means that you may have to wait longer for your refund. Let’s say you’ve claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). Then, even if you chose direct payment and there are no problems with your tax return, your refund will be sent to you on February 27. This is because of a federal rule that requires extra identity checks for people who file for the EITC or ACTC.

After the middle of February, the IRS can only give you back some of your refund linked to the credit, not the whole amount. The IRS may want to know more about your return if you claimed EITC or ACTC. It will happen, and they will send you a letter. The IRS has updated the information on Where’s My Refund for people who filed for the EITC or ACTC. You can now see expected deposit dates.

The EITC is a tax break for people who make low to average amounts of money. People with children get more of it. The most current numbers from the IRS show that about 23 million workers and families got about $57 billion in EITC for the 2022 tax year. Based on your income and number of children, the credit can be worth up to $7,430, but most people only get $2,541.

The IRS thinks that about 20% of taxpayers who are qualified still need to file for the credit, even though they are eligible. The ACTC is the part of the Child Tax Credit that can be refunded, and families who owe less than their Child Tax Credit Amount claim it. ACTC is $1,600 for the tax year 2023.

In general, taxpayers should not count on getting their return by a certain date. The IRS warns that some tax returns will take longer to process than others, which means that people will have to wait longer for their refunds.

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