Earned Income Tax Credit 2024 – Eligibility, Amount & How to claim it online?

The earned income credit for 2023 (taxes filed in 2024) varies from $600 to $7,430 based on your filing status and number of children. The maximum earned income tax credit amounts are available below inside the table.

Earned Income Tax Credit 2024

The earned income tax credit (EITC) is a tax deduction that is refundable that benefits some low-income American taxpayers. If the tax credit is above the taxpayer’s annual tax liability, refunds may be available to them.

Even if a person does not owe income tax, the EITC offers a tax refund if the additional money exceeds tax liability.

No. of children Maximum EITC AGI or Single head of household, widowed or married filing separately Married filing jointly
0 $600 $17640 $24210
1 $3995 $46560 $53120
2 $6604 $52918 $59478
3 or more $7430 $56838 $63398

Eligibility for EITC 

Investment income cap: 

  • Your investment income in 2023 can’t be more than $11,000. In 2024, that amount rises to $11,600.

Annual earnings:

  • Pensions and unemployment benefits are not included, you must have at least $1 in earned income.

Clery or army member:

  • The restrictions can be different for you if you’re a member of the clergy or the armed forces, are divorced or separated from your spouse, or receive disability payments.

Income from abroad: 

  • You must not file Form 2555 for Foreign Earned Income, be a citizen or resident alien, and possess a valid Social Security number.

Age:

  • You must be at least 25 but not older than 65 to be eligible for the Earned Income Tax Credit (EITC) if you do not have any qualifying children. 

Earned Income Tax Credit 2024

Who is eligible for the EITC as a qualifying child?

Each child you claim as part of your earned income credit must meet specific requirements to be eligible:

  • The child may be your grandchild, stepchild, foster child, adopted child, or biological child.  child can also refer to any of their children, your step-sibling, sibling, or half-sibling.
  • If the child is filing jointly, they must be younger than you or your spouse and under 19 at the end of the year; if the child is a full-time student, they must be under 24. Children who are completely and permanently disabled have no age restrictions.
  • The child has to have spent more than six months living in the United States with you or your spouse.

How to claim EITC in 2024 for tax year 2023?

  • To be entitled to receive the EITC, you must complete a federal income tax return, or Form 1040.
  • When filing your taxes, you must include the Schedule EIC if you claim a child. You are required to enter the name(s), Social Security number, birth year, and relationship(s) with any qualifying child(ren). In the Schedule EIC, you will also need to include details regarding the child(ren)’s age, length of stay with you, and disability status.
  • The majority of tax preparation software providers will guide you through the earned income tax credit application procedure, typically by posing a series of questions and figuring out your eligibility. The tax preparer will subsequently include your Schedule EIC and complete line 27 of your 1040.

When will I receive the EITC in 2024? 

In January 2024, the taxpayer gets their EITC refund. Refunds are typically issued as soon as the taxpayer files their return. Refunds to taxpayers who filed their returns and included the additional child tax credit or the Earned Income Tax Credit (EITC) will be credited in February.

The issuers have been granted permission by the Internal Revenue Service to receive a refund of the tax credit before February 28, 2024. The deadline for the taxpayer to file their tax return is April 15, 2024.

The deadline of October 15, 2024, has been provided by taxpayers who file extensions. The final tax return will be accepted electronically through November 2024. The individual’s EITC refund will be disbursed before the commencement of the new fiscal year.

How much time do I need to wait for payment? 

Within three weeks of the IRS receiving your electronically filed tax return, or 6 months after mailing in your paper return, you can check the status. Usually, overnight, this data is updated once every 24 hours.

The actual refund date will appear on your screen once the IRS approves your EITC refund.

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