To receive the EITC, taxpayers must file a federal tax return, even if they are not otherwise required to do so. The Internal Revenue Service (IRS) requires eligible filers to submit Form 1040 (or ...

While the maximum amount available is $7,830 when claiming the EITC for tax year 2024, the IRS has said eligible taxpayers received an average of $2,743 from the credit in tax year 2023.

That could prove concerning given the EITC was expanded through the American Rescue Plan, the $1.9 trillion pandemic relief bill signed into law last year by President Biden.

Additionally, for taxable years beginning in 2025, you won't be eligible for the EITC if your investment income exceeds $11,950. Here are the income phaseout amounts for claiming the EITC for tax ...

As the 2025 tax season approaches, U.S. taxpayers have the opportunity to claim the Earned Income Tax Credit (EITC), potentially boosting their refunds by up to $8,000.

Basically doubling the current childless worker EITC and expanding it to higher income levels would make the marriage penalty worse, although by marginal amounts (less than $100 in today’s dollars).

Single adults without children, however, will see no improvement. Although the federal tax code began to give them a meager EITC scale about 10 years ago, that won’t change.

The Internal Revenue Service’s strategy for examining claims for the Earned Income Tax Credit are falling short, with nearly one-fourth of EITC payments estimated to be wrong last year and the IRS ...