If you have low-income or living under a moderate-income while supporting your family, then you can be benefitted with the Earned Income Tax Credit (EITC). The Internal Revenue Service (IRS) provides the EITC to help low- to moderate-income taxpayers and families get a tax break. The credit amount depends on the number of children, dependents you have or if you have any disability. Apart from that, your adjusted gross income must not exceed the limit in order to claim the tax credit. On continuing to this post, you will be able to get important details on the Earned Income Tax Credit Payout in 2024. I advise you to read the full post to get all the information about the EITC credit amount and Adjusted Gross Income limit along with the payout dates and eligibility criteria, so that you cannot miss any updates.
What is Earned Income Tax Credit Payout 2024?
As per the IRS’ official definition, the Earned Income Tax Credit is provided to the low-income individuals and their households, so that they can be able to get a tax break and maybe increase their refund. If you qualify for the EITC, you can also be eligible to claim other tax credits benefits such as Child Tax Credit (CTC) and credit for other dependents, Child and Dependent Care Credit and Education Credit. To understand the EITC, it is important for you to be aware of the term ‘Earned Income’. According to IRS, the earned income includes all the taxable income and wages a taxpayer gets from working for someone else, yourself or from a business. To be able to claim the EITC, you must have earned income and must not exceed the Adjusted Gross Income (AGI) limit for current, previous and upcoming tax years.
The types of earned income may include wages, salary, money made from self-employment such as owing a business, certain disability benefits issued before the retirement age, social security, unemployment benefits, interest and dividends, etc. To claim the EITC, a taxpayer will need to file their federal tax returns before the deadline which was April 15, 2024. However, it is extended to October 15, 2024 and you are advised to file your tax returns as soon as possible. The credit amount you are entitled to claim if you have qualified for the EITC will depend on your adjusted gross income and the number of children you have whether you are filing as an individual or a married couple filing a joint claim. You must file your tax return before the deadline to claim the EITC.
Earned Income Tax Credit Payout 2024 Quick Details
| Post title | Earned Income Tax Credit Payout 2024 |
| Country | The USA |
| Concerned department | Internal Revenue Service |
| Category | Taxation |
| Applicability | Low-income or moderate-income individuals and their families |
| Governed by | The federal government of the US |
| Year | 2024 |
| Official website | www.irs.gov |
Who is Eligible for Earned Income Tax Credit 2024?
The IRS has set certain guidelines for the taxpayers to qualify for the EITC in 2024. Thus, it is important for you to be aware of the essential requirement to claim the EITC while filing your tax returns. I have provided the eligibility criteria in the points listed below:
- A person must be a citizen and permanent resident of United States of America.
- A person must be under low-income to moderate income category in order to be eligible for the EITC.
- must have a Social Security Number.
- Individual must have carefully and accurately filed their tax returns.
- If you claim disability benefits, then your payment will be qualified as earned income while filing your tax returns.
- The AGI must not exceed the limit or in other case, the credit will be reduced.
EITC Credit Amount and Income Limit 2024
Your AGI, investment income and credit amounts of previous tax year will impact the credit amount you will receive after filing your tax returns. On exceeding the set limit, your tax credit may be reduced up to a certain income. Thus, it is important for you to be aware of the maximum AGI, investment income and credit amounts for tax year 2023, before you proceed to further procedures. You can check the limit in the following table:
| Children | For single, head of household or widowed | Filing as married (jointly) |
| Zero | $17,640 | $24,210 |
| One | $46,560 | $53,120 |
| Two | $52,918 | $59,478 |
| Three or more | $56,838 | $63,398 |
NOTE: The investment income limit is $11,000 or less.
The tax credit that will be provided will also depend on the number of children you have whether you are an individual claimant or filing a joint claim with your spouse or common law partner. I have provided the maximum credit amounts in the table mentioned below:
| Children | Credit amount |
| No qualifying children | $600 |
| One | $3,995 |
| Two | $6,604 |
| Three or more qualifying child | $7,430 |
Earned Income Tax Credit 2024 Payout Dates
- The payout dates for the Earned Income Tax Credit will depend on when does a taxpayer file his/her federal tax returns in 2024. The last date to file your federal tax returns was April 15, 2024 but it can be extended to October 15, 2024 is some requirements. The sooner you will file your tax returns, the sooner IRS will distribute your tax credits. In addition to it, there are a number of factors that can affect your credit to arrive in your account.
- For instance, the mode of filing your tax returns. IRS advises the taxpayers to file their tax returns via online mode which is one of the faster processing modes as compared to other mediums. Apart from that, you are advised to avoid any error while filing your tax returns or in other case, your credit will be delayed. If you have filed your tax returns electronically without any errors, then you can expect your earned income tax credit within 21 days of filing your tax returns.
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David has spent Several years reporting on the oil and gas industry, uncovering the latest trends and technological breakthroughs. His expertise in energy markets and passion for sustainable practices make his articles both insightful and forward-thinking. Davis’s in -depth analyses are a staple for professionals seeking to stay ahead in this dynamic field.