The tax filing season has officially begun with 2023 tax documentation being accepted by the Internal Revenue Service (IRS). Meanwhile, filers are being encouraged to look at whether they qualify for a commonly missed tax credit.
The Earned Income Tax Credit, also known as the EITC, is available to low- to moderate-income workers, some of whom have qualifying children, according to the IRS.
The more children you have and the less you make, the greater the tax credit.
Being a tax credit, the money reduces a person’s taxes, but also can result in payment of the overage amount to the taxpayer, according to Nerd Wallet.
The amount of the credit varies by how many children the filer has. For 2023 taxes, filed in 2024, the maximum credit earned is:
- $600 for filers with no children
- $3,995 for filers with one child
- $6,604 for filers with two children
- $7,430 for filers with three or more children
The maximum credit is up from $6,935 in 2022.
Eligibility also depends on the amount of income a filer earns and whether or not a filer is filing as single, head of household or as married filing jointly.
Income for a single person with no children tops out at $17,640, while income for a family with three qualifying children that is married filing jointly tops out at $63,398. Investment income for any instance must be less than $11,000, according to the IRS.
Here is the breakdown of income making a family eligible.
No children
- Single, head of household, or widowed – $17,640
- Married filing jointly – $24,210
One child
- Single, head of household, or widowed – $46,560
- Married filing jointly – $53,120
Two children
- Single, head of household, or widowed – $52,918
- Married filing jointly – $59,478
Three or more children
- Single, head of household, or widowed – $56,838
- Married filing jointly – $63,398
One thing to keep in mind with the Earned Income Tax Credit is that your refund may be delayed if you qualify for it.
By law, the IRS must wait until mid-February to issue refunds to taxpayers to claim the credit, the IRS said.
The tax filing deadline in Massachusetts is Wednesday, April 17, 2024, due to state holidays. In most other states, the deadline is Monday, April 15.
You can read more about qualifying for the Earned Income Tax Credit here.
