The Internal Revenue Service can send eligible recipients of the Earned Income Tax Credit (EITC) up to $7,830. This is the maximum amount the IRS set for Tax Year 2024. Therefore, if you qualify for the largest EITC for the Tax Year 2024, you will receive it in 2025. To qualify for such a large tax credit, you must meet all the requirements and have 3 or more qualifying children.
If you only have 2 qualifying children, the IRS could send you a check of up to $6,960. Families with just one kid can receive an EITC of up to $4,213. Even if you have no qualifying child, you can get up to $632.
Who qualifies for the IRS Earned Income Tax Credit?
The Internal Revenue Service claims that this Earned Income Tax Credit money is for taxpayers with a low-to-moderate income. For your information, the amount of your EITC will vary depending on the number of children you have, people with disability, or dependents living in the same household.
Members of the clergy or the military have special rules for the EITC so check them before they affect other government benefits you may be receiving. If you are not, just check the basic rules the IRS set for the EITC:
- first, you must have earned income
- secondly, you must have investment income under the limit
- thirdly, you must have a valid SSN (Social Security Number) by the due date of your tax return (extensions are included)
- Only for United States citizens or resident aliens for the full year
- you cannot have filed Form 2555 (Foreign Earned Income) to claim the EITC
How can taxpayers find out if they qualify for IRS EITC?
The IRS strongly recommends ensuring you qualify for EITC before claiming it. If you claim the EITC, your tax refund will take longer by law. Thus, the Agency cannot issue EITC refunds before mid-February.
Using the Earned Income Tax Credit Assistant is the best way to find out eligibility. Not only will it help you learn if you qualify, but also if you have qualifying children, the estimate amounts of your credit and even your filing status.
To use the IRS EITC assistant at https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant, make sure you have with you:
- All the Income statements you have such as W-2s, or 1099s
- Any documents to prove the expenses or adjustments to your income
- Documents showing money paid to you or taxes withheld
Sources: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables
