The 2026 tax filing season is officially in full swing following the Internal Revenue Service (IRS) opening its digital doors on January 26, 2026. While millions of taxpayers have already submitted their 2025 federal income tax returns, many are noticing the familiar “Still Processing” message on the Where’s My Refund? tool.
Understanding why your status hasn’t moved to “Approved” requires a look at several new legislative changes, modernization efforts, and specific late-winter holds that affect millions of households.
Understanding the 2026 Refund Timeline
For most taxpayers, the IRS continues to maintain a standard processing window. If you filed electronically and chose direct deposit, the agency aims to issue your refund within 21 days. However, the timeline for seeing an initial status update depends on how you filed:
- E-filed returns: Status usually appears within 24 hours of the IRS accepting the return.
- Paper returns: Status can take up to four weeks to appear in the system.
- Prior-year e-filed returns: Status typically updates within 3 to 4 days.
If your status remains in the “Received” or “Still Processing” phase beyond 21 days, it typically indicates that your return requires a manual review or is subject to specific legal holds.
Mandatory Holds for EITC and ACTC Claimants
One of the most common reasons for a “Still Processing” status in early February is the PATH Act. By law, the IRS cannot issue refunds for returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before mid-February.
For the 2026 season, the IRS has announced that most EITC and ACTC-related refunds will be available in taxpayer bank accounts by March 2, 2026, provided the filers used direct deposit and there are no other issues with the return. The Where’s My Refund? tool is expected to provide projected deposit dates for these specific filers starting February 21, 2026.
New 2026 Refund Rules: The Paper Check Phase-Out
A significant change for the 2026 filing season is the IRS’s shift away from paper checks under the “Modernizing Payments To and From America’s Bank Account” initiative. This transition has introduced a new reason for processing delays:
- Missing Direct Deposit Info: If a return is filed without bank account information, the IRS may temporarily freeze the refund rather than automatically mailing a check.
- The CP53E Notice: If your refund is frozen for this reason, the IRS will issue a Notice CP53E. You will then have approximately 30 days to provide direct deposit details through your IRS Individual Online Account.
- Manual Waivers: Taxpayers without bank accounts must now specifically request a paper check waiver through their online account, which can add several weeks to the total processing time.
Impact of the “One, Big, Beautiful Bill” Legislation
The 2026 filing season is the first to implement several major provisions from the One, Big, Beautiful Bill passed in 2025. These changes include new deductions for tips, overtime pay, and car loan interest, as well as the new “Trump Account” for children’s savings.
Because these are new tax law components, the IRS systems are performing more rigorous validation checks on returns claiming these benefits. If your return includes the new Schedule 1-A, it may stay in “Processing” longer as the system verifies eligibility against third-party data to prevent errors or fraudulent claims.
Modernization Efforts and Staffing Factors
The IRS is currently navigating a complex operational landscape. While the agency has launched the Zero Paper Initiative to digitize paper-filed returns more quickly using optical character recognition, the transition is ongoing.
Additionally, significant staffing reductions implemented in 2025 have left certain departments with fewer personnel to handle flagged returns. Although a brief partial government shutdown occurred in late January 2026, the IRS utilized backup funding to maintain operations through early February, meaning refund processing was not immediately halted, though some secondary services may experience lag.
What to Do If Your Status Is Stuck
If your return has been processing for more than 21 days (for e-file) or 6 weeks (for paper), you should take the following steps:
- Check for Correspondence: Log into your IRS Online Account to see if the agency has issued any notices, such as a request for identity verification or a CP53E notice.
- Verify Information: Ensure the refund amount you are entering into the “Where’s My Refund” tool exactly matches the “Whole Dollar” amount on your Form 1040.
- Avoid Calling Unless Necessary: The IRS advises against calling the refund hotline unless the tool specifically instructs you to do so, or if it has been more than 21 days since your return was accepted.
Frequently Asked Questions
Why is my 2026 refund still processing after 21 days?
Delays are often caused by the mandatory PATH Act hold for EITC/ACTC claims, new verification requirements for 2025 tax law changes, or a missing direct deposit setup.
When will EITC and ACTC refunds be deposited in 2026?
The IRS expects most of these refunds to reach bank accounts by March 2, 2026, for taxpayers who chose direct deposit and filed without errors.
What is the CP53E notice I saw mentioned?
This is a new notice for 2026 informing you that your refund is frozen because you did not provide valid direct deposit information; you must update your account to release the funds.
A former Wall Street analyst turned independent advisor, Mike specializes in retirement planning, 401(k) strategies, Social Security optimization, and late-career financial moves for everyday Americans.