The tax season for 2025 will soon begin, and millions of Americans will receive their refunds. The Internal Revenue Service (IRS) recently announced that on Monday, January 27, 2025, it would begin accepting and processing tax returns and refunds for the fiscal year 2024.
The Internal Revenue Service (IRS) allows taxpayers to claim a variety of tax breaks on their returns, including the Earned Income Tax Credit (EITC), which has a maximum of $7,830 for fiscal year 2024. The figure will increase to $8,046 in fiscal year 2025.
The IRS approved up to $7,800 refund if you meet these requirements
The EITC benefits workers with low to moderate wages. If a person is eligible, the credit can be used to increase or decrease their tax refund, according to the IRS.
Depending on their eligibility, low- and moderate-income workers can claim anywhere from $632 to $7,830 on their tax returns this year. The amount of tax help a taxpayer receives is determined on their annual income and the number of children they have.
Qualifying earned income and satisfying particular adjusted gross income (AGI) and credit limits for current, previous, and future tax years are required to claim the Earned Income Tax Credit (EITC).
Individuals and married taxpayers filing jointly must have worked and earned less than $59,899 or $66,819, respectively. The specific income of each taxpayer for the 2024 tax year is shown here. Additionally, it is necessary to follow the following:
- Earn less than $11,600 from investments in the 2024 tax year.
- Own a current Social Security number by the time your 2024 return is due.
- Possess U.S. citizenship or be a resident alien for the entire year.
- Failure to submit Form 2555 (foreign earned income)
- If you and your spouse are not filing a joint tax return, you must adhere to specific regulations.
What is the 2025 Earned Income Tax Credit (EITC) maximum amount?
According to the Internal Revenue Service (IRS) information for this year, the maximum Earned Income Tax Credit (EITC) that Americans could be eligible for is:
- $632 if you don’t have any eligible kids ($649 in FY2025)
- $4,213 if you have one eligible child ($4,328 in FY2025)
- $6,960 if you have two eligible children ($7,152 in FY2025)
- $7,830 (or $8,046 in FY2025) if you have three or more qualified children.
The EITC is a tax benefit that is refundable. This suggests that eligible taxpayers can use the appropriate credit to reduce their tax liability. If the credit exceeds the government’s taxes, the excess is refunded. You can claim the Earned Income Tax Credit (EITC) on Form 1040 or Form 1040-SR when filing your annual tax return.
When will the IRS send the EITC refund to eligible recipients?
The IRS expects that by February 27, the majority of EITC refunds will be available. After filing your return, the IRS allows you up to 21 days to get your refund via direct deposit if you filed electronically, or six to twelve weeks if you filed by mail.
Furthermore, the IRS2Go app and the Where’s My Refund? feature enable taxpayers to track the status of their returns. Among the various functions that this IRS app offers are as follows:
- Refund status: Check IRS2Go to see how your federal income tax refund is progressing. You can check the status of your refund around four (4) weeks after mailing your paper return or within 24 hours of receiving your e-filed return.
- Make a payment: Gain easy access to mobile-friendly payment methods like IRS Direct Pay, which offers a secure, cost-free way to make payments directly from your bank account. Credit or debit cards can also be used to pay through an authorized payment processor.
- Free tax help: Prepare and file your taxes. You may quickly prepare, file, and get your return by utilizing your mobile device to access free tax software. If you want to receive free tax advice in person, you can find a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) location near you. Taxpayers who meet certain criteria can take part in these initiatives.
