EITC Income Limits for Tax Year 2024 – Who can claim, how much you may get?

The Earned Income Tax Credit (EITC) sets income limits based on filing status and the number of children. In 2024, the EITC amounts will range from $632 to $7,830, with adjusted income limits for different filing statuses and children.

EITC Income Limits

In 2024, the Earned Income Tax Credit (EITC) will offer varying amounts, ranging from $632 to $7,830, depending on filing status and the number of children, with adjusted income limits accordingly.

For those without qualifying children, the credit can be up to $18,591. With one qualifying child, the credit extends to $48,000; with two, it reaches up to $54,428; and for those with three or more qualifying children, the credit can go up to $59,899. 

Income Limits Based on Family Status for EITC 

The EITC income limits depend on your filing status and the number of qualifying children you have. 

  • Single/Head of Household or Qualifying Surviving Spouse, Married Filing Separately:
    • No Qualifying Children: Up to $18,591
    • One Qualifying Child: Up to $48,000
    • Two Qualifying Children: Up to $54,428
    • Three or More Qualifying Children: Up to $59,899
  • These are the maximum income limits. You might still qualify with slightly higher income depending on your situation.
  • Married couples filing jointly can also benefit from the EITC, with different income limits.
  • The number of qualifying children significantly impacts both the income limits and the amount of credit you receive.

Who Can Claim the EITC?

To be eligible for the EITC, you must meet the following requirements:

  • Earned Income Requirement: Your income must come from wages, salaries, or self-employment. Investment income (interest, dividends) doesn’t qualify.
  • Investment Income Limit: In 2024, your investment income cannot exceed $11,600.
  • Filing Status: You cannot be claimed as a dependent on someone else’s tax return. There’s a special exception for qualifying widows(ers) with a dependent child filing as Head of Household.
  • Age: You must be at least 25 years old by the end of the tax year, with an exception for qualifying widows(ers) with a dependent child.
  • Residency: You must be a U.S. citizen or resident alien for more than half of the tax year.
  • Valid Social Security Number (SSN): Everyone you claim on your taxes, including yourself, must have a valid Social Security number.

Qualifying Children and the EITC.

  • Your son, daughter, stepchild, adopted child, foster child, brother, sister, half-brother, half-sister, or a descendant of any of these (e.g., grandchild, niece, nephew).
  • Under age 19 at the end of the tax year.
  • Under age 24 and a full-time student for at least half the school year.
  • Lived with you for more than half the tax year.
  • Claimed as a dependent on your tax return

How much credit can you receive EITC Payout?

The Earned Income Tax Credit (EITC) is a fantastic tax benefit for low- and moderate-income workers, but the amount of credit you receive depends on several factors. 

  • Filing Status and Qualifying Children: The EITC amount varies significantly depending on your filing status and the number of qualifying children you have. 
  • Single/Head of Household or Qualifying Surviving Spouse:
    • No Qualifying Children: Up to $600
    • One Qualifying Child: Up to $3,995
    • Two Qualifying Children: Up to $6,604
    • Three or More Qualifying Children: Up to $7,430
  • Earned Income: Generally, the higher your earned income (wages, salaries, self-employment income) within the eligible range, the higher your EITC amount. 
  • However, once you reach a certain income level (phase-out limit), the credit amount starts to decrease until it reaches zero.

Claiming the EITC for 2024 Taxe Year 

Several IRS-approved Free File options are available for eligible taxpayers (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free).

  • Follow the instructions provided by your chosen online filing platform.
  • Claim the EITC: 
    • Look for a section dedicated to claiming tax credits.
  • Locate the Earned Income Tax Credit (EITC) and select it.
  • The platform will guide you through entering your qualifying information.
  • Choose direct deposit for your refund to receive it faster, including any EITC amount.
  • Once you’ve reviewed your return for accuracy, electronically sign it and submit it securely. 

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