The 2025 IRS Tax season is expected to begin by the end of Jan 2025. The taxpayers must check if they are eligible to claim the refundable credits, which may increase their tax refund. The tax credit allows taxpayers to reduce their tax bills and save money.
Taxpayers who meet certain eligibility criteria get tax credits that can convert into refunds when the tax bill is less than the credit amount. With tax season approaching, taxpayers should know about these IRS Tax credit refunds and their expected pay date.
IRS Tax Credit Refund 2025
The federal government offers tax credits on certain conditions that reduce their tax bills and potentially increase their tax refund as well. The refundable credits are those credits that allow eligible US citizens to get a refund even if they have zero tax liability. When the taxes you pay are lower than the amount of the refundable credit, the difference is credited.
Hence, the IRS urges people to check the tax credit qualification eligibility and if they qualify they must file the tax return to receive the tax credit refund. Under the IRS tax system, the agency has many credits, but refundable credits are EITC (Earned Income Tax Credit) and ACTC (Additional Child Tax Credit).
Taxpayers can claim this refundable credit if they meet the eligibility and receive the tax credit refund. The EITC is for people who earn moderate to low income and ACTC is claimed by the people who qualify for the Child Tax Credit. The refund amount of both credits is different, the same as the eligibility.
IRS Tax Credit Refund Amount 2025
The IRS usually adjusts the tax provision annually for each tax year based on the inflation rate, hence, you may find changes in the credit refund amount. This year, you guys will file the tax return for the 2024 tax year, so based on the 2024 tax year inflation adjustment, the taxpayers claiming tax credits EITC/ ACTC can expect the following refund amount:
- EITC tax refund payout depends on the number of qualifying children you claim as the dependent in the tax return. Hence, the amount may vary from person to person, however, you can check the maximum EITC payout that you can receive as the refund below:
| Number of Qualifying Children | EITC Amount for the 2024 tax year |
| Zero | $632 |
| One | $4213 |
| Two | $6960 |
| Three or more | $7830 |
- ACTC: The taxpayers who will claim the ACTC credit with their 2024 tax year return can expect to receive a $1700 refund, which is higher than the previous $1600 credit amount.
When can you expect the IRS Tax credit Refund in 2025?
According to the IRS tax system, the agency processed the tax credit refund a little late due to the PATH Act restriction. Under the PATH Act, the federal government does not allow the IRS to process the tax credit refund till 15 Feb of the tax season.
The restriction of the PATH Act is there to prevent the tax credit scam and ensure only eligible taxpayers receive the benefit. So, even if you file the tax return claiming the tax credits you will not receive the tax credit refund till 15 Feb 2025.
According to the IRS, the agency will process the IRS Tax credit refund after the 15 Feb for the early filers within a week for direct deposit filers. The IRS says the taxpayers who have filed the Tax return claiming EITC/ ACTC can expect the refund via direct deposit on 27 Feb 2025 or afterward, whereas the paper check refund will be processed after the first week of March 2025.
Taxpayers should know that tax refunds are processed faster if they have selected direct deposit as their payment method compared to paper checks.
How can you track your IRS Tax Credit Refund?
The taxpayers who file federal income tax returns must know that they can track their returns and refund easily through the IRS Where’s My Refund tool. The Where’s My Refund tool will show you the exact status of your IRS return and tax refund recorded in the IRS system.
Through this IRS tool, you can know whether your IRS tax return is accepted or not, in the second stage, you can know if the IRS has approved the refund amount you have entered into the tax return, and lastly, if will show you the stage of Refund Sent when the agency processes your tax refund.
Taxpayers can find this tool on the IRS official website and IRS mobile app whichever they are comfortable with and track the tax credit refund status by entering Social Security Number/ ITIN, refund amount, tax year, and filing status. Taxpayers can’t track the amended tax return status through the tool.
What can you do when you do not receive the IRS tax credit refund?
Taxpayers generally receive the tax credit refund in the expected time as per the refund status, however, sometimes it can be delayed or stopped due to some reasons. For instance, the wrong bank account details or an invalid bank account can create problems, or you owe tax debt to the agency, etc.
In such cases, the taxpayers should first track their tax refund status and if you do not receive the refund after the status is showing the refund is sent, you should call the agency at 800 829 1954 or visit the nearest tax office to inquire about your tax credit refund.
Taxpayers preparing to file the 2024 tax year taxes or have no tax liability should check the tax refundable credits and if they qualify they should claim them with their tax return to receive more tax refund.