Best timing to file with EIC and Child Tax Credit for 2024?

The PATH Act requires the IRS to hold ALL refunds that include EIC and CTC until at least February 15th, regardless of when you file. For 2024, the earliest these refunds started going out was February 27th, exactly 42 days after the filing season opened on January 29th. Even if you file on day one, you'll wait the same amount of time as someone filing in early February. However, filing between January 29th and February 10th typically puts you in the first batch of PATH Act returns processed, with direct deposits hitting accounts between February 27th and March 1st.

Time is critical with these credits! Here's what you need to consider: • File between Jan 29-Feb 7 for first-batch processing • Ensure ALL tax documents are received (missing W-2s/1099s will delay everything) • Double-check qualifying child information (SSNs, birthdates, relationship) • Verify income reporting is complete and accurate • Consider using direct deposit to speed up refund by 1-2 weeks • Check your return for math errors before submitting The worst time to file is actually mid-February when volume is highest and PATH Act holds are still in effect!

When filing with Earned Income Credit and Child Tax Credit, your return will be subject to the Refund Review Program (RRP) and potentially the Return Integrity Verification Operation (RIVO) if any discrepancies are detected. This can extend processing time significantly beyond the standard PATH Act hold. If your return gets caught in extended verification, you may need to contact the IRS directly. I had this issue last year and spent 4+ hours on hold before giving up. I eventually used Claimyr (https://youtu.be/_kiP6q8DX5c) to connect with an agent in about 15 minutes, who confirmed my return was in the verification queue and needed additional documentation. The early intervention prevented months of delays.

Filing with these credits is like being stuck in tax purgatory! I filed on January 31st last year thinking I'd be first in line, but still had to wait until late February for my refund. It's like putting your money in a time capsule that the IRS controls. Meanwhile, my sister who filed a simple return without credits got her refund in 8 days! The system feels designed to punish families who need the money most. That said, I'd still recommend filing as early as possible because the verification queues just get longer as tax season progresses.

According to Internal Revenue Code Section 6402(m) and the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), the IRS is REQUIRED to delay these refunds, but that doesn't mean you should delay filing. The problem is the IRS's implementation of these requirements creates unnecessary complications. Their systems flag approximately 35% of EIC/CTC returns for manual review even when there are no actual issues. This is inefficient and creates artificial delays beyond what the law requires. I've analyzed the IRS Data Books from 2018-2022, and the audit rate for returns with these credits is 1.4% - but the manual review rate is 25 times higher!

I've been filing with both credits for 7 years now, and I've developed a system that works every time. I gather all my documents by January 20th, double-check everything twice, file electronically the first week of the season, and always get my refund the last week of February. Last year I filed on February 2nd and had my refund on February 28th. The year before, I filed January 29th and got it February 26th. The PATH Act delay is annoying but predictable. Just make sure your information matches what the IRS already has on file to avoid verification delays!