Tax season 2026 has officially arrived, yet millions of families now face a digital wall. Many people count on this money to pay debt or repair vehicles. Consequently, you must brace for potential delays this year. The IRS has flagged specific returns for “enhanced review.” These returns often contain two very popular tax credits. This delay is not a glitch. Instead, the IRS is making a concerted effort to curb fraud. Unfortunately, this process catches honest taxpayers in the crosshairs. Here are the two credits that could block your 2026 refund.
The Earned Income Tax Credit (EITC)
The EITC provides a lifeline for many workers, yet the IRS scrutinizes this credit heavily. Eligibility rules remain complex. They involve residency, relationships, and specific income thresholds. For this reason, the IRS uses a manual review process for many claims.
Under the PATH Act, the IRS must hold EITC refunds until mid-February. However, the review window is extending even further in 2026. New identity verification protocols have slowed the process significantly. If you claimed this credit, your refund is not “missing.” Rather, it currently sits in a digital waiting room. Therefore, you should prepare for a longer wait than usual.
The Clean Energy Home Improvement Credit
Record numbers of taxpayers are claiming this credit in 2026. This trend follows a surge in solar and heat pump installations during 2025. Because these credits are worth thousands of dollars, the IRS demands more proof than ever. You must have your manufacturer’s certification and receipts ready. Otherwise, the IRS will freeze your refund.
Actually, many filers must now provide photos of the installation. They must also provide specific equipment SKUs. On the other hand, the IRS might deny your claim if you used an unregistered contractor. This credit serves as a major red flag this year. For this reason, you must ensure your documentation is ironclad before you file.
Accuracy is Your Best Strategy
A blocked refund creates a financial nightmare, but truth provides the fastest escape. If the IRS sends a letter requesting information, do not ignore it. The longer you wait to verify your identity, the further back in line you go.
The 2026 tax season will test your patience. Stay organized and keep your records. Remember, a delayed refund is better than a denied one. Your money is coming; it is simply taking the long way home.
Is your refund currently showing as “Received” but not “Approved”? Let us know in the comments how long you’ve been waiting.
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The post Your 2026 Refund Could Be Blocked If You Claimed These Two Credits appeared first on Budget and the Bees.
