Here is the earned income tax credit for 2024 returns

On By Littum

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This tax season expects the IRS more than 140 million individual returns – and many files could miss a credit worth a value of thousands of dollars.

The earned income tax credit, or EITC, is a tax relief for workers with low to moderate income. In 2023, eligible taxpayers received one Average Credit of $ 2,743According to the IRS.

“Each year, millions of households receive EITC,” former IRS Commissioner Danny Werfel said in early January, but “almost 1 out of 5 qualified taxpayers do not claim this valuable credit because they do not know about it or are not ready Over 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. Qualified workers aged 25 to 64 without children may require up to $ 632 for 2024.

By Law, IRS Unable to issue EITC refund Before mid -February, according to the agency. Most early tax files, however, will see a status update in “Where is my refund?” Portal On February 22nd. Refunds were to arrive before March 3rd for files who chose direct deposits and whose tax returns have no problems.

How the earned income tax credit works

EITC “can be confusing,” said Professor of Syracuse University Law Robert Nassau, director of the school’s low -income tax clinic.

For tax year 2024, you may be eligible for “earned income” or wages from working up to $ 59,899 for single filers and up to $ 66,819 for married couples who jointly, according to the IRS. These income limits are based on households with three or more qualifying children and fall for households with fewer children.

These boundaries use Adjusted gross incomewhich is your total income after subtracting prior 401 (k) plan contributions and “Adjustments“Such as certain contributions to prior pension account, student loan expenses and teacher expenses.

Tax Tip: Earned Income Credit

Other EITC requirements include:

  • Your investment income cannot be over $ 11,600
  • You have to be a US citizen or inhabiting 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 justified taxpayers missing EITC could be lower revenue without a filing requirement, Nassau said. But the EITC can be “refunded”, which means you can still demand a refund, even without tax liability.

You can use the IRS ‘ EITC assistant To see if you qualify.

If you are eligible, you can archive for free using the IRS Direct file, IRS FREE file, Volunteer Income Cativity And others.