Key Takeaway Box
- The Earned Income Tax Credit (EITC) is a refundable tax credit that helps low- to moderate-income workers and families reduce their tax liability or increase their refund.
- The EITC amount depends on your income, filing status, and number of qualifying children. For 2024, the maximum credit ranges from $543 to $6,728.
- To claim the EITC, you need to file a tax return and meet certain eligibility criteria. You can use the IRS EITC Assistant to check if you qualify and estimate your credit amount.
- If you claim the EITC, your refund may be delayed until mid-February by law. However, you can get your refund faster by filing online, choosing direct deposit, and avoiding errors on your return.
- If you need help with filing your taxes or claiming the EITC, you can use free tax preparation services offered by the IRS or its partners, such as HustleHub.
What is the EITC and How Much Can You Get?
The Earned Income Tax Credit (EITC) is a tax benefit that helps working people with low to moderate income. The EITC reduces the amount of tax you owe and may give you a refund. The EITC is refundable, which means you can get money back even if you don’t owe any tax.
The amount of EITC you can get depends on your income, filing status, and number of qualifying children. For 2024, the income limits and credit amounts are as follows:
| Filing Status | No Children | 1 Child | 2 Children | 3 or More Children |
|---|---|---|---|---|
| Single, Head of Household, or Widowed | $15,980 ($21,920 if 65 or older) | $42,158 ($48,108 if 65 or older) | $47,915 ($53,865 if 65 or older) | $51,464 ($57,414 if 65 or older) |
| Married Filing Jointly | $21,920 ($27,860 if 65 or older) | $48,108 ($54,048 if 65 or older) | $53,865 ($59,805 if 65 or older) | $57,414 ($63,354 if 65 or older) |
| Number of Children | Maximum Credit Amount |
|---|---|
| No Children | $543 |
| 1 Child | $3,618 |
| 2 Children | $5,980 |
| 3 or More Children | $6,728 |
The EITC is based on your earned income, which includes wages, salaries, tips, self-employment income, and other taxable employee compensation. It does not include interest, dividends, pensions, social security, unemployment, or alimony.
How to Claim the EITC and Get Your Refund Faster
To claim the EITC, you need to file a tax return, even if you don’t owe any tax or are not required to file. You also need to meet certain eligibility criteria, such as:
- Having a valid Social Security number for yourself, your spouse (if filing jointly), and any qualifying children
- Having earned income from working for someone else or running a business or farm
- Having income below the limits for your filing status and number of children
- Not filing as married filing separately
- Not being a qualifying child of another person
- Not having foreign earned income or investment income over $3,650
- Living in the U.S. for more than half of the year
- Having a qualifying child or being between 25 and 64 years old if you don’t have a child
A qualifying child for the EITC must meet four tests: relationship, age, residency, and joint return. You can use the IRS EITC Assistant to check if you or your child qualify for the EITC and estimate your credit amount.
If you claim the EITC, you can expect to get your refund by February 27, 2024, if you file online, choose direct deposit, and have no issues with your return. However, some taxpayers may see their refunds a few days earlier or later, depending on their financial institution and processing time.
To get your refund faster, you should:
- File your return electronically as soon as possible. You can use the IRS Free File³ program or a reputable tax software to file your return online for free or at a low cost.
- Choose direct deposit as your refund method. Direct deposit is the fastest and safest way to get your refund. You can split your refund among up to three accounts, such as checking, savings, or retirement accounts.
- Avoid errors on your return. Errors can delay your refund or result in an audit. Some common errors to avoid are: entering wrong Social Security numbers, misspelling names, claiming ineligible dependents, miscalculating income or credit amounts, forgetting to sign and date your return, and using an incorrect filing status.
- Check the status of your refund. You can use the Where’s My Refund⁴ tool on the IRS website or the IRS2Go app to track your refund. You will need your Social Security number, filing status, and exact refund amount to access this information. You can check your refund status within 24 hours after the IRS receives your e-filed return or four weeks after you mail your paper return.
Where to Get Help with Your Taxes and the EITC
If you need help with filing your taxes or claiming the EITC, you can use free tax preparation services offered by the IRS or its partners. Some of these services are:
- Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). These programs provide free tax help to people who make $57,000 or less, persons with disabilities, limited English speakers, and individuals 60 years and older. IRS-certified volunteers will help you prepare and e-file your return and claim the EITC and other credits. You can find a VITA or TCE site near you by using the VITA/TCE Locator Tool⁵ or calling 800-906-9887.
- Facilitated Self Assistance (FSA). This service is for people who are comfortable doing their own taxes but need some guidance. You can use an IRS computer at a VITA or TCE site to prepare and e-file your return for free, with the help of a certified volunteer if you have questions.
- Free File. This is an online service that lets you prepare and e-file your federal tax return for free if your income is $72,000 or less. You can choose from a variety of tax software providers that partner with the IRS to offer this service. Some providers may also offer free state tax return preparation. You can access Free File through the IRS website³.
Conclusion
The EITC is a valuable tax credit that can boost your refund and help you improve your financial situation. To claim the EITC, you need to file a tax return and meet certain eligibility criteria. You can use the IRS EITC Assistant to check if you qualify and estimate your credit amount. If you claim the EITC, you can get your refund faster by filing online, choosing direct deposit, and avoiding errors on your return. If you need help with your taxes or the EITC, you can use free tax preparation services offered by the IRS or its partners, such as HustleHub.
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Source: (1) Earned Income Tax Credit (EITC) | Internal Revenue Service. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc. (2) When to expect your refund if you claimed the Earned Income Tax Credit …. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/when-to-expect-your-refund-if-you-claimed-the-earned-income-tax-credit-or-additional-child-tax-credit. (3) EITC Awareness Day: Critical tax credit provides a significant refund …. https://www.irs.gov/newsroom/eitc-awareness-day-critical-tax-credit-provides-a-significant-refund-boost-to-millions.