People in the United States wanted to know about the EITC & ACTC IRS Direct Deposit, which is expected to help them. Both hefty taxes are expected to bring fiscal relief to the country’s low and moderate-income families.
These benefits not only lower tax payments but also provide large refunds to the people for assisting with higher inflation rates. To receive these benefits, citizens must know about the payment schedule released by the department.
EITC & ACTC IRS Direct Deposit 2025
The Earned Income Tax Credit and Additional Child Tax Credit are two valuable tax credits that offer much-needed financial assistance to households. Eligible individuals can use these benefits to manage their monthly expenses and improve the quality.
The IRS taxes refunds provisionally under the PATH Act in 2025; people can still receive faster refunds by filing early. However, people should understand that only eligible people who meet the specific requirements of authorities can get a refund.
IRS Direct Deposit 2025 Overview
| Department | Internal Revenue Service |
| EITC | Earned Income Tax Credit |
| ACTC | Additional Child Tax Credit |
| Country | USA |
| ACTC Refundable Amount | Up to $1,400 per child |
| Payment Date | Mid-May 2025 (under the PATH Act) |
| Benefit Criteria | Based on income, children, and tax liability |
| Category | Government Aid |
| Official Website | https://www.irs.gov/ |
IRS Direct Deposit Refund Schedule 2025
The Internal Revenue Service department has given some deadlines for refund processing for EITC & ACTC IRS Direct Deposit this month. Under the PATH Act, refunds for filing these credits will only be given in mid-February or after mid-February through direct deposits or paper checks.
Here, we have shared the estimated refund schedule for 2025, depending upon the events.
| Event | Date | Details |
|---|---|---|
| IRS Begins Accepting Returns | January 27, 2025 | Start date for filing 2024 tax year returns |
| PATH Act Refund Hold Period | Until February | EITC/ACTC refunds held for verification |
| Refund Updates Available | February 22, 2025 | Check status via IRS “Where’s My Refund?” tool |
| Direct Deposit Date | March 3, 2025 | EITC/ACTC filers with direct deposit receive refunds by this date |
| Paper Check Mailing Begins | Mid to Late March 2025 | Paper check refunds begin mailing during this period |
EITC Income Limits Based on Family Size
The EITC is an income-based tax credit given to individuals and low-to-moderate-income families. Everyone should know that the number of family members plays a vital role in deciding the limit for receiving EITC from the IRS.
There is an income limit for filing the tax return 2024, which is as follows:
- Families with no qualifying children, is $600
- Families with one qualifying child are $3,995
- Families with two qualifying children $6,604
- Families with three or more qualifying children $7430
Eligibility Requirement for EITC & ACTC
The Earned Income Tax Credit (EITC) is a subsidy for low- to moderate-income working people. To be eligible, there are limitations on earned income, adjusted gross income (AGI), and investment income.
The amount of the credit differs based on income and the number of qualifying children. Filing status & residency also play a part in determining eligibility. This credit is intended to lower the tax burden and can even bring a refund.
The Additional Child Tax Credit is a refundable credit available to taxpayers who qualify for the Child Tax Credit but cannot receive the full amount due to having little or no tax liability. Even if taxpayers do not owe taxes, they can still receive a refund through the ACTC.
- To qualify for the ACTC, the taxpayer should have an income of at least $2,500. The refundable amount in ACTC is a maximum of $1,400 per qualifying child.
- A child should pass the qualifying tests, which include age, relationship to the taxpayer, US residency of more than half the year, and financial support from the taxpayer.
Why EITC/ACTC Refunds Are Delayed
In 2015, the PATH Act was passed to fight the fraud and identity theft that occurred during the distribution of refunds. Under the Act, the Internal Revenue Service department will not release refunds on returns claiming EITC or ACTC until mid-February.
For tax year 2025, eligible taxpayers of the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) will delay their tax refunds. This is because refunds with these credits are withheld from release by the IRS for further scrutiny.
Although this is an inconvenience, the delay prevents false claims and guarantees that all refund amounts are accurate and verified appropriately before their release.
FAQs
How do you check the IRS tax refund status?
People can check the IRS Tax refund status using the IRS tool “Where’s My Refund.”
Which collection method of payment gives faster payments?
E-filling tax returns with direct deposit as a collection method allows people to receive the refund faster.
What happens if I don’t get my refund on time?
You need to check the details entered on the return, which must be accurate.