A tax credit worth up to $7,830 often goes unclaimed: See who qualifies for the EITC
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(NEXSTAR) – There is a sizable tax credit for low- and moderate-income families, but the IRS estimates a fifth of eligible taxpayers fail to take advantage of the tax break each year.
The Earned Income Tax Credit (EITC) was signed into law and is designed to "lift many financially challenged families out of poverty," according to the IRS.
Depending on the number of dependents one has, the maximum credit for tax year 2024 is $7,830. In the previous year taxpayers received an average EITC amount of $2,743.
Do I qualify for the Earned Income Tax Credit (EITC)?
To qualify for the EITC, you must have under $11,600 in investment income and earn less than a specific income level from working. If you’re single with no children, your income level must be $18,591 or below. And if you’re married filing jointly with three or more children, you must make $66,819 or below. To determine if your household qualifies based on your marital status and your number of dependents you can use the online EITC Assistant tool.
| No. of dependents | Single filer income limit | Married, filing jointly income limit |
| No children | $18,591 | $25,511 |
| 1 child | $49,084 | $56,004 |
| 2 children | $55,768 | $62,688 |
| 3+ children | $59,899 | $66,819 |
What’s different this year?
The IRS has expanded a program that allows people to file their taxes directly with the agency for free. The federal Direct File program, which permits taxpayers to calculate and submit their returns without using commercial tax preparation software, is now available to taxpayers in 25 states, up from 12 states that were part of last year’s pilot program.
The program allows people in some states with very simple W-2s to calculate and submit their returns directly to the IRS. Those using the pilot program in 2024 claimed more than $90 million in refunds, the IRS said in October.
The Associated Press contributed to this report.
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