If you’re wondering when the IRS will begin processing electronic returns that include the Child Tax Credit (CTC), you’re not alone. As taxpayers gear up for tax season, it’s crucial to understand the timeline for receiving refunds, especially if you qualify for the Child Tax Credit. This blog post will answer your questions about when you can expect the IRS to start processing electronic returns with the Child Tax Credit, and how you can ensure a smooth filing experience.
At American Tax Defense, we know how important it is to file your taxes correctly and on time. In this article, we’ll provide essential information about the IRS’s timelines, the Child Tax Credit, and the steps you need to take to ensure your tax return is processed without delay.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) is a valuable benefit for parents and guardians of children under the age of 17. The credit was expanded in 2021 under the American Rescue Plan, increasing the amount of the credit and offering monthly advance payments. For 2023 and beyond, the Child Tax Credit continues to provide up to $2,000 per qualifying child, with $1,500 of that amount being refundable for most families.
Eligibility for the Child Tax Credit depends on various factors, such as income, filing status, and the age of your child. If you qualify, you can receive a substantial tax benefit, which may result in a larger refund or reduced tax liability.
When Will the IRS Start Processing Electronic Returns with Child Tax Credit in 2024?
Tax season 2024 is upon us, and many taxpayers are eager to know when the IRS will start processing their electronic returns, particularly those that claim the Child Tax Credit. Typically, the IRS begins processing returns for the current tax year in late January. For the 2023 tax year (with filing in 2024), the IRS started accepting electronic returns on January 23, 2024.
It’s important to note that the IRS doesn’t begin issuing refunds immediately upon receiving returns. There’s a processing period that can take anywhere from a few days to a few weeks, depending on various factors like the complexity of your return, your filing status, and whether you claimed credits like the CTC.
How Long Will It Take for the IRS to Process Returns with Child Tax Credit?
Once the IRS receives your electronic return, they typically begin processing it within 24-48 hours. However, when you claim the Child Tax Credit, your return may undergo additional review. While this review process is usually routine, it may cause a delay in your refund.
On average, taxpayers can expect to receive their refunds within 21 days of the IRS accepting their return. However, this is not guaranteed, and some factors may cause delays:
- EITC or CTC claims: Returns claiming the Earned Income Tax Credit (EITC) or Child Tax Credit often require additional verification, which can delay the refund process.
- Errors on your return: If there’s a mistake or missing information, the IRS may need additional time to process your return.
- Identity verification: If the IRS needs to verify your identity or address an issue related to fraud prevention, processing may take longer.
For the most accurate information on your refund status, use the IRS “Where’s My Refund?” tool, which updates daily.
Will I Receive My Refund Faster if I File Electronically?
Yes, filing electronically is the fastest and most efficient way to ensure your return is processed as quickly as possible. Electronic filing (e-filing) is secure and accurate, and it helps prevent delays caused by paper-based returns.
Additionally, e-filing ensures that you receive your refund through direct deposit, which is typically faster than receiving a check in the mail. You can expect to receive your refund within 21 days if you file electronically and choose direct deposit.
Steps to File Your Tax Return with the Child Tax Credit
Filing your return correctly the first time is crucial to ensure there are no delays with processing. Here are the steps to file your tax return with the Child Tax Credit:
- Gather Your Documents: Make sure you have all the necessary documents, including your W-2, 1099 forms, and Social Security numbers for yourself, your spouse (if applicable), and your children.
- Determine Your Eligibility: Review the eligibility criteria for the Child Tax Credit. Ensure that you meet the income and age requirements and that your children are U.S. citizens or nationals.
- Use Reliable Tax Software or a Tax Professional: If you’re unsure about claiming the Child Tax Credit or need assistance with your return, consider using reliable tax software or contacting a professional tax preparer. American Tax Defense can help you navigate the complexities of tax season and ensure you’re getting the maximum refund possible.
- File Electronically: File your return electronically to speed up the processing time. E-filing minimizes errors and ensures a quicker route to receiving your refund.
- Track Your Refund: Use the IRS “Where’s My Refund?” tool to track your refund status and get updates on when your refund will be issued.
Common Issues That Can Delay Processing
There are several reasons why your return might not be processed quickly, even if you file electronically. Some of the common issues include:
- Incorrect Social Security Numbers: If there’s a mismatch between the names and Social Security numbers of dependents or taxpayers, the IRS may delay processing.
- Claiming the Child Tax Credit for Ineligible Children: Ensure that your children meet the age and residency requirements for the CTC.
- Errors in Your Income: Double-check your income amounts and make sure they match the information on your tax forms.
- Filing Status Issues: Filing as “Head of Household” or “Married Filing Jointly” with incorrect or missing details can result in delays.
How Can American Tax Defense Help You?
At American Tax Defense, we specialize in tax preparation and defense services. If you’re concerned about how the Child Tax Credit will impact your return, or if you’ve experienced delays in receiving your refund, our team is here to help. We can guide you through the filing process, make sure your return is accurate, and help resolve any issues with the IRS.
We understand that tax season can be stressful, and we’re here to make the process as smooth as possible. Whether you’re filing for the first time or need assistance with a complex tax situation, our experts are ready to assist you.
Conclusion
If you’re wondering when the IRS will start processing electronic returns with the Child Tax Credit, the answer is that the IRS typically begins accepting returns in late January, with processing usually beginning within 24-48 hours. While most refunds are issued within 21 days, the Child Tax Credit and other factors may cause minor delays. To ensure your return is processed quickly, file electronically, double-check your information, and consider using professional help if needed.
American Tax Defense is here to help you navigate tax season and maximize your refund. If you have any questions or need assistance, don’t hesitate to reach out. We’re here to ensure you get the full benefits of the Child Tax Credit and any other tax credits you’re eligible for.
