The Internal Revenue Service (IRS) is urging millions of taxpayers to review their eligibility for the earned income tax credit (EITC) as the 2024 tax year filing season gets underway. The refundable income tax credit can reduce a tax bill or boost a tax refund, yet many eligible households fail to claim it each year.
The earned income tax credit is one of the federal government’s largest refundable benefits for moderate-income workers and families. Unlike the standard deduction, which lowers taxable income, the EITC directly reduces the amount of income tax owed. Because it is refundable, eligible taxpayers can still receive money back even if they don’t owe federal tax.
For the 2024 tax year, the credit ranges from $632 for workers without children to $7,830 for families with three or more qualifying children. The exact amount depends on filing status, earned income, and the number of dependents. The IRS notes that even individuals without children may still qualify for the EITC, provided they meet certain eligibility requirements.
Eligibility for the earned income credit depends on filing status, income, and the number of qualifying children. The IRS sets annual limits for each tax year.
When claiming EITC, the IRS requires valid Social Security numbers for all individuals listed.
To receive the earned income credit, taxpayers must file a federal tax return for the applicable tax year, even if their income is below the standard filing threshold. Filing is the only way to access this benefit.
Taxpayers with children must attach Schedule EIC to verify dependents when claiming EITC. Those without children can still claim the earned income credit if their earned income meets IRS limits.
The IRS defines qualifying children as sons, daughters, stepchildren, siblings, or descendants, such as foster or adopted children. Each must have a valid Social Security number and meet residency and age rules. Eligibility also applies if at least one spouse is responsible for the child on a joint tax return or as head of household.
Certain taxpayers fall under special rules. Individuals who are full-time students, totally disabled, or have self-employment income may still qualify. The IRS provides guidance to help these groups claim the EITC properly under their filing status.
For eligible taxpayers, the earned income tax credit (EITC) can lower the amount they owe or increase the size of their tax refund. Unlike the standard deduction, which reduces taxable income, this refundable tax credit directly offsets a tax bill. If no income tax is owed, filers may still receive money back.
The Internal Revenue Service notes that some refunds will be delayed. Federal law requires refunds for those claiming EITC and the Additional Child Tax Credit to be held until mid-February, a safeguard intended to reduce errors and fraud.
Families with qualifying children, including a foster child or adopted child, often see the largest benefit. For the 2024 tax year, the maximum credit reaches $7,830 for households filing a joint tax return with three or more children.
The Internal Revenue Service is expanding outreach to ensure more taxpayers claim the earned income tax credit this tax year. Commissioner Danny Werfel said the agency is “on the side of taxpayers” and committed to helping families claim the credit fairly.
The IRS is working with community partners and providing free assistance through VITA and TCE programs, which support moderate-income workers, veterans, and seniors.
The IRS urges taxpayers to file a tax return early to see if they qualify for the earned income tax credit (EITC), a refundable income tax credit that can lower a tax bill or increase a tax refund. Eligibility often changes each tax year due to marital status, becoming head of household, or adding a foster or adopted child.
Free tools like the EITC Assistant, IRS Free File, and VITA/TCE programs help taxpayers check eligibility requirements and properly claim the EITC.
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