Missing Out on $7,830? The Tax Credit You Can’t Afford to Ignore

Every year, millions of American workers leave potentially thousands of dollars on the table by not claiming the Earned Income Tax Credit (EITC). Celebrating its 50th anniversary, the EITC has been helping low-to-moderate income households boost their refunds and reduce financial strain. Yet, the IRS estimates that roughly one in five eligible taxpayers fail to claim it. Depending on your filing status and number of qualifying children, you could be entitled to as much as $7,830 for the 2024 tax year.

Below is what you need to know about the EITC, including how to check if you qualify and the steps to claim this valuable credit.

What Is the EITC?

The Earned Income Tax Credit is a refundable tax credit aimed at helping working families, especially those with lower incomes. Since its inception in 1975, the EITC has been expanded and refined through multiple legislative updates, serving as a critical tool in reducing poverty and encouraging employment.

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• In 2024, eligible families with three or more children can qualify for up to $7,830.
• Even single workers with no dependents can receive up to $632 if they meet the income requirements.

How to Check If You Qualify

1. Review the Income Limits

Your 2024 earned income must be below specific thresholds, which vary by filing status and number of qualifying children:

Note: Your total investment income (e.g., from interest, dividends, capital gains) must be $11,600 or less in 2024.

2. Check Additional Requirements

• You (and your spouse if filing jointly) must have a valid Social Security number (SSN).
• You must file a tax return even if your earnings are below the regular filing threshold.
• The credit is generally not available for those filing Form 2555 (Foreign Earned Income).
• You must be a U.S. citizen or resident alien all year.
• Special rules apply if you’re in the military, clergy, or have certain disability incomes.

3. Use the IRS EITC Assistant

The IRS provides an online EITC Assistant that walks you through a quick questionnaire to verify eligibility. You’ll answer questions about your filing status, income, and any qualifying children.

Why People Miss Out

1. Not Realizing They Qualify
   Life changes—like getting married, divorced, or having a child—can affect your eligibility. Many people assume their income is too high or overlook the credit if they don’t typically file a tax return.
2. Complicated Rules
   The EITC has specific guidelines and exceptions, which can intimidate or confuse some taxpayers.
3. No Return Filed
   If your income is low enough that you’re not required to file a tax return, you might never think to file just for the purpose of claiming the EITC.

How to Claim the EITC

1. File a Tax Return
   Even if you don’t owe taxes or normally aren’t required to file, you must file a return to claim the EITC.
2. Choose a Filing Method That Works Best for You:
   • IRS Free File:
     For those below a certain income threshold, you can use guided tax preparation software for free.
   • Direct File:
     An option in some states to prepare and file online directly with the IRS (with live chat support).
   • Professional Tax Preparer:
     If you choose a tax professional, check their credentials (CPA, Enrolled Agent, etc.) or use the
     Directory of Federal Tax Return Preparers
     to confirm you’re dealing with a reputable individual.
   • Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE):
     Free in-person help is available at thousands of sites nationwide. Use the
     VITA/TCE Locator Tool or call 800-906-9887 to find a location near you.
3. Include Direct Deposit Information
   The fastest way to receive your refund, including the EITC portion, is via direct deposit.

When to Expect Your Refund

• EITC/ACTC Refund Timeline: Under current IRS procedures, if you file early and everything is in order, you can typically expect your EITC-related refund to arrive in your bank account by early March.
• Use the “Where’s My Refund?” tool for real-time updates on your return status, especially after mid-to-late February.

Other Valuable Credits to Explore

Even if you qualify for the EITC, you may be eligible for additional credits:

• Child Tax Credit (CTC)
• Additional Child Tax Credit (ACTC)
• Credit for Other Dependents (ODC)

Use the Interactive Tax Assistant on the IRS website to determine eligibility for these and other tax benefits.

Final Thoughts

The Earned Income Tax Credit can deliver a significant financial boost—up to $7,830 in some cases. Yet every year, countless Americans miss this opportunity simply because they’re unaware they qualify or don’t know how to claim it. Don’t leave money on the table:

• Check Your Eligibility using the IRS EITC Assistant.
• File Your Return even if it’s not normally required.
• Use Free or Professional Help to make sure your filing is accurate.

Tax time can be complex, but the potential reward of the EITC makes it well worth taking a moment to review your situation. Spread the word to friends, family, and coworkers—together, we can ensure that everyone who qualifies receives the benefit they’ve rightfully earned.

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