IRS Refund Delays And New Rules Shape 2026 Tax Season

As tax season kicks off in the United States, millions of Americans are preparing to file their returns, eager for the refunds that often represent the single largest payment many households receive all year. The Internal Revenue Service (IRS) opened the 2026 tax filing season on January 26, 2026, marking the start of a process that will see an estimated 164 million individual tax returns submitted ahead of the April 15 deadline, according to the IRS. This year’s tax season is notable not only for its historical significance—2026 marks the 250th anniversary of the Declaration of Independence and the 40th anniversary of electronic filing—but also for the unique challenges and opportunities facing taxpayers in the wake of recent legislative and administrative changes.

For most filers, the process is relatively straightforward: file electronically, opt for direct deposit, and expect a refund within 21 days. "Filing electronically and choosing direct deposit remains the fastest way to receive a refund," IRS Chief Executive Officer Frank J. Bisignano emphasized, as reported by CBS News. The IRS has continued to encourage the use of its e-file system, noting that more than half of taxpayers now use a professional preparer and that free filing options are available for those who qualify. The IRS Free File program offers brand-name tax preparation software at no cost to eligible taxpayers, while Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs provide free basic tax return preparation to qualified individuals. For the first time, the IRS is phasing out paper refund checks, meaning most taxpayers must provide their bank routing and account numbers to receive refunds via direct deposit, per Executive Order 14247.

Yet, even with streamlined electronic systems and a host of support options, not everyone will see their refund arrive within the standard three-week window. Certain groups of filers—including those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC)—will have to wait until at least March 2, 2026, to receive their refunds. This delay, mandated by the PATH Act of 2015, is designed to give the IRS extra time to verify income and identity, thereby reducing the risk of erroneous or fraudulent refunds. According to the IRS, the status of EITC and ACTC refunds will be available beginning February 21, 2026, via the "Where’s My Refund?" tool. For families who rely on these credits, the wait can be frustrating, but the safeguards are intended to protect both taxpayers and the integrity of the tax system.

For those eligible, the EITC offers up to $649 for filers with no children and up to $8,046 for those with three or more children, depending on income and number of dependents. The Child Tax Credit remains a significant benefit as well, with a maximum of $2,200 per qualifying child under age 17, of which up to $1,700 is refundable as the ACTC. However, as FindLaw reports, issues such as questions about a child’s eligibility or how the credit should be split between parents with shared custody can cause processing delays.

Refunds are not just a matter of submitting paperwork and waiting. The IRS’s "Where’s My Refund?" tool and IRS2Go mobile app allow taxpayers to track their refund status in real time. For electronically filed current-year returns, status updates are available within 24 hours; for paper returns, it takes about four weeks. The tracker will display one of three statuses: "Return received," "Refund approved," or "Refund sent." Once a refund is marked as sent, it may still take up to five days for banks to post the deposit, a delay sometimes exacerbated by weekends or holidays. The tool is typically unavailable each morning between 4:00 and 5:00 am Eastern Time, as noted by CBS News.

While the IRS aims to issue most refunds within 21 days, a variety of factors can stretch that timeline. Errors, incomplete information, or math mistakes can halt processing until corrected. Identity verification or suspected fraud will also result in delays, with the IRS contacting taxpayers directly if additional information or action is required. In some cases, missing prior-year returns can cause the IRS to withhold refunds entirely until delinquent returns are filed and any penalties or back taxes are paid. Outstanding debts—such as unpaid federal or state taxes, delinquent child support, or defaulted student loans—may also lead to a reduction or delay in refunds through the Treasury Offset Program.

Another wrinkle this year is the impact of significant IRS staffing cuts. In the first half of 2025, the Trump administration and the Department of Government Efficiency implemented a reduction of more than 20% of IRS employees, amounting to about 25,000 staffers. While some have since been rehired, the loss of experienced personnel may affect the speed and efficiency of refund processing. According to FindLaw, over 30% of the IRS’s revenue agents who conduct audits were part of the 2025 layoffs, potentially impacting the agency’s ability to resolve flagged returns quickly.

Amid these changes, there is some good news for filers: the average refund is projected to rise this year. Last year, the average refund was nearly $3,200, and a recent analysis by Piper Sandler suggests that the typical refund could increase by about $1,000 to roughly $4,200, depending on individual circumstances and the effects of new Republican-backed tax and spending legislation. Older Americans who qualify for the new $6,000 senior deduction and homeowners able to utilize the expanded $40,000 state and local tax deduction are among those who may benefit most, according to CBS News.

To avoid unnecessary delays, the IRS and tax experts advise taxpayers to double-check their returns before filing, ensure all information is complete and accurate, and respond promptly to any IRS correspondence. For those who feel overwhelmed by the complexity of the tax code or encounter issues, professional help is available through tax preparers, the IRS, or taxpayer advocate services. As always, vigilance is essential: taxpayers should be wary of unethical "ghost" preparers who refuse to sign returns, and should keep their Social Security Number or Individual Taxpayer Identification Number, filing status, and refund amount handy when checking their status online.

This tax season, as America celebrates its 250th birthday and the IRS marks four decades of e-filing, the agency is striving to balance efficiency with security. For most, the process will be smooth and speedy; for others, patience and preparation will be key. Either way, the annual ritual of tax filing remains a defining feature of civic life—and, for many, a much-anticipated financial boost.