Tax filers in the U.S. may receive up to $7,830 in Earned Income Tax Credit (EITC), which is higher than previous year. In 2023, the maximum EITC amount was $7,430.
For this tax season, single filers without qualifying children who have an income of up to $18,591 and married joint filers with an income of up to $25,511 can receive a maximum credit of $632. Similarly, single filers with one qualifying child earning up to $49,084 or married joint filers earning up to $56,004 can receive a credit of up to $4,213.
Single filers with two qualifying children earning up to $55,768 or married joint filers earning up to $62,688 can receive up to $6,960 in credit. Those with three or more qualifying children earning up to $59,899 (single) or $66,819 (married joint filers) can receive a maximum credit of $7,830.
If a tax filer owes taxes to the IRS, the credit amount will be deducted from the owed amount, and the remaining balance will be refunded to the taxpayer’s account. If the filer does not owe taxes, the entire credit amount will be refunded.
The Earned Income Tax Credit is a tax benefit designed for low- and moderate-income earners, with higher amounts available for those with children. The IRS states that about 20% of eligible taxpayers fail to claim this credit.
Refunds for those who claim the Earned Income Tax Credit will be available only after March 3. Federal law requires additional verification to prevent identity theft among EITC claimants. However, some taxpayers may receive their refunds a few days earlier.