The Internal Revenue Service can distribute up to $7,830 to qualifying Earned Income Tax Credit (EITC beneficiaries). This is the maximum amount set by the IRS for Tax Year 2024.
As a result, if you qualify for the highest EITC for Tax Year 2024, you will receive it in 2025. To qualify for such a big tax credit, you must meet all of the criteria and have three or more qualified children.
If you only have two qualified children, the IRS may issue you a check worth up to $6,960. Families with just one child are eligible for an EITC of up to $4,213. Even if you don’t have a qualified child, you could receive up to $632.
Who qualifies for the IRS Earned Income Tax Credit?
According to the Internal Revenue Service, the Earned Income Tax Credit is available to people with low-to-moderate incomes. The amount of your EITC varies based on the number of children, individuals with disabilities, or dependents living in the same household.
Members of the clergy and the military have particular restrictions for the EITC, so examine them before they affect any other government benefits you may receive. If you are not, simply verify the basic rules the IRS established 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
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How can taxpayers find out if they qualify for IRS EITC?
Before claiming the EITC, the IRS highly advises you to double-check your eligibility. If you claim the EITC, your tax refund will take longer due to legal requirements. As a result, the Agency cannot provide EITC returns before mid-February.
Using the Earned Income Tax Credit Assistant is the most effective way to determine eligibility. It will not only tell you if you qualify, but also whether you have eligible children, the estimated amount 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