Requirements to receive up to $7,000 for the Earned Income Tax Credit refund (EITC)
There are a number of factors involved when determining eligibility for the tax refund which is one of the largest in the country.
Taxpayers can claim various tax benefits and credits, including the Earned Income Tax Credit (EITC) of up to $7,430. This benefit aims to help low-to-moderate-income workers. If a taxpayer qualifies, they can use the credit to reduce the taxes they owe or increase their refund. Approximately 23 million workers and families received about $57 billion in EITC last year
Thanks to the EITC, low- or moderate-income workers can claim between $600 and $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.
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:
- Have worked and earned income under $63,398
- Have investment income below $11,000 in the tax year 2023
- Have a valid Social Security number by the due date of your 2023 return (including extensions)
- Be a U.S. citizen or a resident alien all year
- Not file Form 2555, Foreign Earned Income
- Meet certain rules if you are separated from your spouse and not filing 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
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.