Millions of Americans will soon get their tax refunds as the 2025 tax season gets underway. The Internal Revenue Service (IRS) just announced that it will begin receiving and processing tax returns and refunds for the 2024 tax year on Monday, January 27, 2025.
The Earned Income Tax Credit (EITC), which has a maximum of $7,830 for the fiscal year 2024, is one of the tax benefits that taxpayers can claim on their return from the Internal Revenue Service (IRS). It will increase to $8,046 in FY 2025.
You can receive a refund of up to $7,800 from the IRS if you fulfill these requirements.
The EITC helps workers with low to moderate wages. According to the IRS, a person who qualifies can use the credit to either increase their tax refund or decrease their tax liability.
Low- and moderate-income workers can claim between $632 and $7,830 on their tax return this year, depending on their eligibility. The amount of tax help a taxpayer receives is determined on their annual income and the number of children they have.
Claiming the Earned Income Tax Credit (EITC) requires qualifying earned income and meeting certain adjusted gross income (AGI) and credit limits for past, present, and future tax years.
You must have worked and earned less than $59,899 for individuals and less than $66,819 for married taxpayers filing jointly.
Below is a breakdown of each taxpayer’s exact income for the 2024 tax year. It’s also crucial to follow these guidelines:
- In the 2024 tax year, make less than $11,600 from investments.
- By the time your 2024 return is due, you should have a valid Social Security number.
- be a resident alien for the full year or hold U.S. citizenship.
- Form 2555 (foreign earned income) was not submitted.
There are rules you must follow if you and your spouse are not submitting a joint tax return.
What is the maximum amount of the Earned Income Tax Credit (EITC) for 2025?
The Internal Revenue Service (IRS) data for this year indicates that Americans may be eligible for the following maximum Earned Income Tax Credit (EITC):
- $632 (or $649 in FY2025) if you have no qualifying children.
- If you have one qualified child, it will be $4,213 ($4,328 in FY2025).
- $6,960 (or $7,152 in FY2025) if you have two eligible children.
- $7,830 if you have three or more eligible children (or $8,046 in FY2025).
One tax benefit that is refundable is the Earned Income Tax benefit. This suggests that eligible taxpayers can reduce their tax liability by using the relevant credit.
If the credit is greater than the taxes owed to the government, the difference is repaid. On your annual tax return, you can claim the Earned Income Tax Credit (EITC) on Form 1040 or Form 1040-SR.
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When will qualified individuals receive their EITC refund from the IRS?
Most EITC-related refunds should be available by February 27, according to IRS projections. If you filed your return electronically, you have up to 21 days to get your refund by direct deposit; if you filed by mail, you have six to 12 weeks.
Furthermore, it is crucial to emphasize that taxpayers can monitor the progress of their returns using the IRS2Go app and the Where’s my refund? service. Here are a few more advantages that this IRS app has to offer:
- Refund status: To monitor the status of your federal income tax refund, use IRS2Go. You can check the status of your refund within 24 hours of receiving your e-filed return or around four (4) weeks after mailing your paper return.
- Pay: Get easy access to mobile-friendly payment options, such IRS Direct Pay, which offers a free and secure way to send money directly from your bank account. You can also pay with a credit or debit card using an authorized payment processor.
- Free tax assistance: Fill out your taxes and submit them. By using your mobile device to access free tax software, you may quickly prepare, file, and get your return.
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If you would prefer to receive free tax assistance in person, you can also find a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) facility in your region. These programs are open to taxpayers who fulfill specific qualifications.
