I have been getting a ton of phone calls about the status of refunds filed at the beginning of tax season (Late January, early February). Many of these contained refundable credits like the Earned Income Credit, American Opportunity education credit, and Additional Child Tax Credit. If your tax return contains any of these credits, the IRS is mandated by law to hold them until at least February 15. Due to late tax law changes and staffing shortages, the release date this year was pushed back and was projected for the 1st week of March.
Yesterday I received notification from my banking service bureau that these will be funded starting on February 26. Based on this information and the timing of the IRS Refund Cycle, you should start seeing refund deposits as early as this Wednesday, February, 26.
I hope this information is useful to those of you wondering why your friend got their refund a week ago, while you are still waiting. Plus, if it keeps you from calling my office to tell you what I just wrote, that really helps keep up on my scheduled appointments. Lol.
Depending on when you filed, the turnaround is always 9-15 days and happens on a Tuesday (Funded Wednesday). The original email text I received regarding this issue is as follows:
PATH Act funding expected next week!
IRS expected to release refunds delayed by PATH Act next week
As you know, Santa Barbara TPG and the entire tax industry expects a historic amount of IRS funding next week which will result in heavy client activity and call volume for TPG and your office.
TPG is here to support you during this high activity period
Funding – we anticipate processing a historic amount of IRS funding during the middle of next week.