IRS Warning Could Slow Down Montana Tax Refunds

If you’re the type of person who files taxes early because you want your refund ASAP, join the club. It’s the fiscal equivalent of waking up at 4 a.m. to shovel your driveway before heading into work.

But the IRS is cautioning that if you’re claiming two specific tax credits, your refund might not land nearly as quickly as you’d hoped, even if you file early enough to avoid a long delay.

And yes, Montana taxpayers are right in that mix.

The Two Credits That May Put the Brakes on It

The IRS says refunds may be delayed for filers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).

Those credits benefit a lot of working families, particularly households with children. They can bump up your refund in a big way, but it’s wonderful only if you were counting on that money arriving in your account early next month.

Because if you claim either of those credits, the IRS is basically like, “Eh, we’ll get to you when we get to you.”

Why The IRS Keeps These Refunds

This delay results from a federal law aimed at reducing tax fraud. The IRS has to hold refunds associated with those credits until after mid-February so the agency can make sure all is well.

So you may still not see your refund until late February, or even early March, regardless of when you file.

What Montana Taxpayers Should Expect

In Montana, many families depend on the money from their refund to get caught up on bills, pay down holiday debt, or pretend that the truck repair they needed wasn’t emotionally scarring.

So if you’re counting on that refund money to hit the bank quick, and you’re claiming EITC or ACTC, understand your wait may be longer than usual. It’s an infuriating scenario where you do everything right, file early, triple-check the info provided, and wind up looking at your bank account like it owes you money.

Because it does.