$7430 payment for the IRS: Requirements and who is eligible to receive the refund
People are preparing for the tax season, and certain taxpayers may be eligible for the Earned Income Tax Credit of up to $7,430. Find out if you qualify.
The 2024 tax season begins on Jan. 29, when the Internal Revenue Service will start receiving and processing returns for the 2023 tax year.
In this declaration, taxpayers can claim various tax benefits and credits, including the Earned Income Tax Credit of up to $7,430.
What is Earned Income Tax Credit?
This benefit aims to help low-to-moderate-income workers. According to the IRS, if a taxpayer qualifies, they can use the credit to reduce the taxes they owe or increase their refund.
Thanks to the EITC, low- or moderate-income workers can claim from $600 to $7,430 on their tax return, depending on eligibility criteria. The amounts of tax support depend on the number of children the taxpayer has, as well as their annual income.
READ ALSO: The difference between tax credits and tax deductions
To claim the EITC, you must have what qualifies as earned income and meet certain adjusted gross income limits as well as limits on the credit for the year.
The requirements include the following:
- Have worked and earned income less than $56,838 for individuals and $63,398 for married taxpayers filing a joint return. You can consult the exact income for each taxpayer.
- Have investment income less than $11,000 in tax year 2023
- Have a valid Social Security number by the due date of your 2023 return
- Be a US citizen or year-round resident alien
- Did not file Form 2555 (foreign earned income)
- You are separated from your spouse and do not file a joint tax return
How much money can be claimed for the Earned Income Tax Credit?
Here are the maximum amounts of credit that a taxpayer can claim:
- If you do not have qualifying children: $600
- If you have a qualifying child: $3,995
- If you have two qualifying children: $6,604
- If you have three or more qualifying children: $7,430
READ ALSO: The benefits of filing taxes even if you’re exempted
When is the EITC refund sent?
The IRS expects most EITC-related refunds to become available beginning in late February. After you have filed your return, the IRS allows up to 21 days to send the refund via direct deposit to those who filed electronically, or between six and 12 weeks if the return was filed via mail.
Taxpayers can check the status of their refund with the Where’s my refund? tool or the IRS2Go App.
For more information, visit the Internal Revenue Service website. The IRS also has a virtual assistant which can help you determine your eligibility.