The 2025 tax season has officially started.
Additionally, the Internal Revenue Service (IRS) is encouraging individuals to examine a frequently disregarded tax credit more closely as individual files begin.
A news release posted on the IRS website states that the Earned Income Tax Credit (EITC) aims to provide financial assistance to American families and workers.
According to the release, one of the biggest refundable tax credits offered by the federal government to low- to moderate-income families is the Earned Income Tax Credit (EITC).According to IRS projections, while filing for 2023, around 23 million eligible workers and families nationwide received approximately $57 billion in EITC.
ETIC eligibility now reaches an income barrier of $59,899 for individuals and $66,819 for married couples filing jointly. Additionally, investment income must not exceed $11,600.
The IRS also mandates that taxpayers have a current Social Security number. Additionally, you cannot have submitted a Form 255 to report foreign income and must be a U.S. citizen or resident alien for the whole year.
The EITC credit varies from $2 to $7,830 based on a number of variables. According to the IRS, having dependents, children, being disabled, or meeting other requirements may also affect the amount of this credit.
Additionally, please be aware that if you claim this credit, your return may be delayed because the IRS is legally compelled to wait until mid-February to pay EITC claimants.
As fate would have it, you can also claim tax credits for prior years up until 2021, provided that you are eligible.
The IRS even provides an EITC Assistant to determine your eligibility for the tax credit.