The commencement of the 2024 tax season is scheduled for January 29, marking the initiation of the Internal Revenue Service’s acceptance and processing of returns for the 2023 tax year.
During this declaration, taxpayers have the opportunity to assert several tax benefits and credits, among them the Earned Income Tax Credit, which can amount to a maximum of $7,430.
The EITC enables individuals with low to moderate incomes to claim a tax benefit ranging from $600 to $7,430 on their tax return, contingent upon specific eligibility criteria.
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The level of tax support is contingent upon both the number of children the taxpayer has and their annual income.
What Are the Qualifications for EITC Eligibility?
To be eligible for the Earned Income Tax Credit (EITC), individuals must possess qualifying earned income and adhere to specific adjusted gross income limits, along with credit limits applicable for the given tax year.
The stipulated requirements encompass the following criteria:
- Employment with earned income below $56,838 for individuals and $63,398 for married taxpayers filing jointly. Precise income thresholds for individual taxpayers can be referenced for accuracy.
- Investment income should be less than $11,000 in the tax year 2023.
- Possession of a valid Social Security number by the due date of the 2023 tax return.
- Status as a U.S. citizen or a year-round resident alien.
- Non-submission of Form 2555 for foreign earned income.
- Separation from one’s spouse and the absence of a joint tax return filing.
EITC Claimable Amounts
Below are the maximum credit amounts that a taxpayer is eligible to claim:
- No qualifying children: $600
- One qualifying child: $3,995
- Two qualifying children: $6,604
- Three or more qualifying children: $7,430
The Internal Revenue Service (IRS) anticipates that the majority of Earned Income Tax Credit (EITC)-related refunds will be accessible starting in late February.
Upon the submission of your tax return, the IRS facilitates the disbursement of refunds, typically within 21 days for electronically filed returns through direct deposit and ranging from six to 12 weeks for returns filed by mail.
Taxpayers can monitor the status of their refund through the “Where’s My Refund?” tool or the IRS2Go App.