Only claimed $500 Other Dependent Credit - Do we wait for PATH Act?

The PATH Act delay only applies to returns claiming Earned Income Credit (EIC) or Additional Child Tax Credit (ACTC), according to the IRS website (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/when-to-expect-your-refund-if-you-claimed-the-earned-income-tax-credit-or-additional-child-tax-credit). Since you're only claiming the Other Dependent Credit ($500), your return should not be subject to the PATH Act hold. Your refund should process according to the normal timeline, which is typically 21 days for e-filed returns with direct deposit.

I was like a hamster on a wheel with this exact question last year! The PATH Act is like a traffic light that only stops certain types of returns - and yours isn't one of them. I eventually used https://taxr.ai to analyze my transcript and it confirmed I wasn't subject to PATH delays. It showed exactly which processing path my return was on and gave me a pretty accurate deposit date prediction. Like having a GPS for your refund journey instead of just guessing!

The PATH Act delay is exactly 45 days from January 29, 2024, to February 27, 2024. It affects only returns with EITC and ACTC. Your Other Dependent Credit of $500 is not included in these categories. Your processing time should be the standard 21 days for e-filed returns, assuming no other issues. I've tracked 37 returns with ODC only this season, and all processed within 14-24 days.

I believe your refund should process without PATH Act delays, though I would note that the IRS might have other verification processes that could potentially slow things down. If you don't see movement within, say, 3 weeks, you may want to contact the IRS directly. Many people have found success using Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to an agent without the typical 2+ hour wait times. It might be worth considering if you need answers about your specific situation.

Have you checked your tax transcript yet? Sometimes it updates before the Where's My Refund tool. It might give you a clearer picture of where your return stands in the process. And hey, at least you're not stuck in the PATH Act purgatory like some of us! 😂

Instead of waiting for automated systems to update, I'd recommend requesting your Account Transcript directly from the IRS. The Transaction Codes (TC) will indicate exactly where your return is in the processing pipeline. TC 150 means your return was processed, TC 806 shows your withholding credits, and TC 846 is the magic code that means your refund is scheduled. No need to worry about PATH Act restrictions with just the Other Dependent Credit.

I processed a return on February 8th with only the $500 ODC (no EITC or ACTC) for a client. The 846 Refund Issued code appeared on their transcript exactly 16 days later, and the deposit hit their account on February 27th. The PATH Act verification period had zero impact on their processing time. The IRS's Modernized e-File (MeF) system handles ODC-only returns through the standard workflow.

According to Internal Revenue Code §6402(m) and the Protecting Americans from Tax Hikes Act of 2015, the mandatory holding period applies specifically to returns claiming EITC under §32 or ACTC under §24(d). The Other Dependent Credit falls under §24(h)(4) and is not subject to these heightened verification procedures. Your return should follow standard processing guidelines as outlined in IRM 21.4.1.3 (Processing Time Frames).