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This tax season, the IRS expects more than 140 million individual returns — and many filers could miss a credit worth thousands of dollars.
The earned income tax credit, or EITC, is a tax break for low- to moderate-income workers. In 2023, eligible taxpayers received an average credit of $2,743, according to the IRS.
“Every year, millions of households receive the EITC,” former IRS Commissioner Danny Werfel said in early January, but “nearly 1 in 5 eligible taxpayers don’t claim this valuable credit because they don’t know about it or don’t realize they qualify.”
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For 2024, the EITC is worth up to $7,830 for eligible families with three or more children, up from $7,430 for 2023, according to the IRS. Eligible workers ages 25 to 64 without kids can claim up to $632 for 2024.
By law, the IRS can’t issue EITC refunds before mid-February, according to the agency. However, most early tax filers will see a status update in the “Where’s My Refund?” portal by Feb. 22. Refunds should arrive by March 3 for filers who chose direct deposit and whose tax returns have no problems.
How the earned income tax credit works
The EITC “can be confusing,” said Syracuse University law professor Robert Nassau, director of the school’s low-income tax clinic.
For tax year 2024, you may be eligible with “earned income,” or wages from working, of up to $59,899 for single filers and up to $66,819 for married couples filing jointly, according to the IRS. These income limits are based on households with three or more qualifying children and decrease for households with fewer children.
These limits use adjusted gross income, which is your total income after subtracting pretax 401(k) plan contributions and “adjustments,” such as certain pretax individual retirement account contributions, student loan interest and educator expenses.
Other EITC requirements include:
- Your investment income can’t be above $11,600
- You must be a U.S. citizen or resident alien all year
- You need a valid Social Security number for you, your spouse (for joint returns) and qualifying children
- You must file a tax return
Some eligible taxpayers missing the EITC could be lower earners without a filing requirement, Nassau said. But the EITC is “refundable,” meaning you can still claim a refund even without tax liability.
You can use the IRS’ EITC assistant to see if you qualify.
If eligible, you can file for free using IRS Direct File, IRS Free File, Volunteer Income Tax Assistance and others.
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