When Will the IRS Start Processing Electronic Returns with Child Tax Credit?

On January 27, 2025, the IRS began accepting and processing electronic tax returns for the 2025 tax filing season. There are specific timelines that may affect the processing of returns and refunds for taxpayers claiming the Child Tax Credit (CTC).

Key Dates for Electronic Returns with the Child Tax Credit

1. January 27, 2025 – Tax returns begin to be accepted and processed by the IRS.
2. Mid-February 2025 – The IRS begins processing returns claiming the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC).
3. February 22, 2025 – The “Where’s My Refund?” tool is expected to update with the status of early CTC and EITC filers.
4. March 3, 2025 – If there are no issues with your return, taxpayers who claim the CTC and EITC should receive their refunds via direct deposit.

Also Check: Where’s My Amended Return? IRS.gov Status Check Guide

Why Does the IRS Delay Processing Certain Returns?

Until mid-February, the IRS must hold refunds for tax returns claiming the Child Tax Credit and Earned Income Tax Credit under the Protecting Americans from Tax Hikes (PATH) Act. Through this delay, the IRS is able to verify income and eligibility for these refundable credits, thus detecting and preventing fraud.

How to Ensure a Smooth Refund Process

To avoid delays in processing and receiving your refund:

• File Electronically – Refunds can be received faster by e-filing and direct deposit.
• Check for Accuracy – Verify all information is accurate, including Social Security numbers and income.
• Use IRS Free File or Direct File – These free filing services can reduce errors and expedite the filing process.
• Track Your Refund – Check the status of your refund on IRS.gov or the IRS2Go app by using the “Where’s My Refund?” tool.

Beware of Tax Scams

Many scammers target taxpayers during tax season by offering fraudulent refund claims or phishing for personal information. The IRS will never communicate with taxpayers regarding tax refunds via email, text, or social media. Any communication should be verified directly through IRS.gov.

Also Check: How Coinbase Reports to the IRS: Updated Tax Rules for 2025

Final Thoughts

In mid-February 2025, the IRS will begin processing electronic tax returns with the Child Tax Credit. Direct deposit taxpayers can expect to receive their refunds by early March if they file electronically. Staying informed and filing early can help taxpayers avoid unnecessary delays and receive their refunds faster.