The 2026 tax filing season brings a mix of potential upsides and familiar frustrations for many American taxpayers. While some filers might see larger refunds due to recent tax law adjustments and changes in withholding patterns, certain common refunds in the $1,000–$3,000 range especially those involving popular credits face mandatory delays under longstanding federal rules. These holdups affect millions each year, particularly when the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) is claimed, even if the return is filed perfectly and early.
Filing Season Kickoff and General Refund Expectations
The IRS officially opened the 2026 filing season on January 26, allowing taxpayers to submit their 2025 returns electronically or by mail. The agency expects to process around 164 million individual returns, with most non-problematic e-filed returns using direct deposit arriving within 21 days of acceptance. Average refund amounts have trended upward in recent years, and analysts suggest 2026 could see even bigger payouts for some due to new deductions, adjusted withholding from prior policy shifts, or simply more aggressive claiming of credits—often landing in that typical $1,000–$3,000 window for working families and moderate earners.
The Main Culprit: PATH Act Restrictions on Refundable Credits
The primary reason many typical refunds get pushed back is the Protecting Americans from Tax Hikes (PATH) Act of 2015. This law requires the IRS to hold off on issuing refunds that include the EITC or ACTC until mid-February at the earliest. The delay applies to the entire refund amount—not just the credit portion—giving the agency extra time to run anti-fraud checks, verify income reporting against W-2s and other records, and prevent improper payments.
This rule impacts a significant portion of filers claiming these credits, which are designed to help low- to moderate-income workers and families with children. Even if you e-file on opening day and your return is error-free, the IRS legally cannot release the funds before around February 15. Processing then begins, with most qualifying refunds scheduled for deposit in late February or early March.
Why $1,000–$3,000 Refunds Are Particularly Affected
Refunds in this range often stem from a combination of withheld taxes plus refundable credits like the EITC (which can reach several thousand dollars depending on income, filing status, and dependents) or ACTC. When these credits are part of the equation, the full amount gets caught in the PATH Act hold. Without them, a similar refund from over-withholding alone might arrive much faster—often within the standard 21-day window. The overlap explains why so many everyday taxpayers in this bracket notice delays year after year, even as overall refund sizes potentially grow.
Other Potential Factors Contributing to Holds in 2026
Beyond the PATH Act, a few additional elements could stretch timelines for some:
- Increased complexity from recent tax law tweaks or new deductions that raise error risks and trigger manual reviews
- Higher volume of returns if more people file early expecting bigger refunds
- Ongoing IRS staffing and processing challenges that slow correspondence or identity verification
Direct deposit remains the fastest method, while paper returns or checks add extra weeks regardless of credits claimed.
What Taxpayers Can Do to Minimize Waits
File electronically with direct deposit as early as possible to get into the queue ahead of the rush. Double-check all entries for accuracy mismatches in income or dependent info often cause flags. Use the IRS Where’s My Refund tool for real-time updates; it typically shows projected deposit dates for EITC/ACTC filers by late February. Avoid amending returns unnecessarily, as that can restart clocks.
The PATH Act delay, while frustrating, has proven effective at reducing fraud since its start. For those relying on refunds in the $1,000–$3,000 range, planning around a late February or March arrival helps avoid financial strain. Larger potential refunds in 2026 make the wait worthwhile for many, but patience remains key during this protected processing period.
