You Can Receive More Than $7000 Dollars This Year: Earned Income Tax Credit in the United States

Within the tax benefit programs that the United States has, the Earned Income Tax Credit (EITC) is an assistance project for workers and families with low incomes.

Those who qualify under the eligibility requirements (which depend on the size of the family unit, marital status, and income), receive a tax credit that can be used to reduce the taxes owed, as well as increase their refund.

According to the adjustments established for this tax season 2024, beneficiaries can claim amounts between $600 and $7,430 dollars, the total amount of fiscal aid varies depending on certain characteristics of the taxpayer’s household, which we detail below.

What basic requirements must I meet to apply for the EITC?

Among the qualification parameters, it stands out to have worked and earned a retribution amount less than $63,398 dollars. Also, demonstrate investment income figures less than $11,000 dollars in the tax year 2023.

It adds the requirement of having a Social Security number valid for the expiration date set by your 2023 declaration, including extensions.

It is also specified that the applicant must be a U.S. citizen or resident alien throughout the year, as well as not having filed Form 2555 for foreign earned income.

If I qualify as eligible, how do I claim the tax credit?

If you meet the eligibility requirements detailed above, you can proceed to claim your tax credit by filing a tax return, regardless of the absence of any tax debt.

You must fill out Form 1040, United States Personal Income Tax Return or Form 1040-SR(SP) United States Tax Return for Individuals Aged 65 or Older.

If you have an eligible child, you must submit the EIC schedule as an annex to the form and declare details of your children on Form 1040.

What is the determination of the total amount to be credited in the EITC?

The determination of the financial assistance amount varies according to certain family particularities, because if there are no qualifying children the monetary figure will be lower than if, on the contrary, there are qualifying children, and in that case, it depends on the number.

• Maximum amount to be credited for a person without qualifying children: $600 dollars.
• Maximum amount to be credited for a person with 1 qualifying child: $3,995 dollars.
• Maximum amount to be credited for a person with 2 qualifying children: $6,604 dollars.
• Maximum amount to be credited for a person with 3 or more qualifying children: $7,430 dollars.

What is the established period for sending a refund?

Once the tax return is filed, a maximum period is established to send the refund, which is 21 days. It is done through direct deposit to those people who sent documents electronically, or in a period of 6 to 12 weeks if it was submitted by mail.

According to statistical data for tax returns with the Earned Income Tax Credit, the analyses of December 2023 showed that approximately 23 million workers and families received this fiscal benefit in a total amount of $57 billion dollars, which evidences the effectiveness of this assistance program.