The term ‘Tax Credit’ is defined as the amount which a taxpayer is allow to subtract directly from the taxes they owe. The tax credit can be categorized into certain categories that include, refundable tax credit, non-refundable tax credit and partially refundable tax credit. The eligible citizens can get a number of tax credits on qualifying the eligibility criteria. For instance, Child Tax Credit (CTC), Earned Income Tax Credit (EITC), American Opportunity Tax Credit, Child and Dependent Care Tax Credit and many more. Continue browsing to this post and you will be able to gain important knowledge on IRS tax credit and its schedule along with various types of tax credits that an individual can claim along with their eligibility requirements. Read the full post, so that you cannot miss any updates on IRS Tax Credit Schedule 2024.
IRS Tax Credit Schedule 2024
Before we move towards the IRS tax credit schedule, it is important that you must learn the difference between tax credit and tax deductions. While the tax credit is termed as the reduction of a specific amount in taxes a taxpayer owes, the tax deduction is termed as a reduction in the amount of income of a taxpayer that is subject to taxation. The schedule for tax credit an individual is eligible to claim will depend on the time when they have filed for their tax credits. As of 2024, the last date to file for the annual tax return of 2023 has already passed and if you have not filed your tax returns, then you can use the benefit of the extended deadline to file your tax returns till 15th October, 2024.
After filing your tax returns, the Internal Revenue Service will approve your tax returns within 24 to 48 hours. Generally, the IRS issues the tax credit within 6 to 8 weeks of the day after approving your tax returns. However, there may arise some instances which can cause a delay by IRS while depositing your tax credits directly to your bank accounts. For instance, if the tax returns are not filed accurately or in simple terms, if you have caused any errors while filing your federal tax returns, then your tax credit will be delayed. To compensate this cause, the IRS will ask you to make corrections which can be considered as a time-consuming process. Thus, it is advised to avoid any kind of error while filing tax returns.
IRS Tax Credit Schedule 2024 Details
| Post title | IRS Tax Credit Schedule |
| Country | The USA |
| Department | Internal Revenue Service |
| Category | Taxation |
| Based on | Annual tax returns |
| Months | July to December |
| Year | 2024 |
| Official website | www.irs.gov |
Child Tax Credit
The Child Tax Credit (CTC) is a non-refundable tax credit which reduce the taxpayer’s tax liability. To be eligible for the CTC, a child must be under 17 years of age, must have a social security number (SSN) and must be dependent to the taxpayer. The maximum CTC amount that can be credited is $2,000 per qualifying child. The deadline to file tax returns for the previous year has already passed on 15th April 2024, however, the citizens who have not filed their returns yet can do so as per the extended deadline of 15th October 2024 before claiming their CTC refunds.
Earned Income Tax Credit
Earned Income Tax Credit (EITC) is for the low-income taxpayers which is claimed by the IRS that four out of five citizens are receiving EITC. 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. Check the maximum amount of credit under EITC as per tax year 2023 in the following table:
| Qualifying child | Amount |
| 0 | $600 |
| 1 | $3,995 |
| 2 | $6,604 |
| 3 or more | $7,430 |
American Opportunity Tax Credit
The IRS stats that the American Opportunity Tax Credit is for qualified education expenses paid by or on behalf of an eligible student for the first four years of higher educations. In case the tax credit reduces the amount of tax a taxpayer owes to zero, then they can get a refund of 40% of any remaining amount of the credit up to $1,000. To claim the credit, the taxpayer’s income must be below $80,000 or $160,000 if they are married and filing jointly.
Child and Dependent Care Credit
If you paid someone to care for your child so that you or your spouse if filing jointly can work or look for work, then you are eligible for the Child and Dependent Care Credit. However, there are some requirements which must be qualified in order to be eligible for the credit which are as follows:
- A person (and spouse if filing jointly) must have lived in the United Stats of America for half a year of the tax year.
- You paid expense for the care of a qualifying individual to enable you (and your spouse if filing jointly) to work or look for work.
- A qualifying individual is generally a dependent under 13 years of age, a spouse of a dependent of any age who is incapable of self-care and who lives with you for more than half of the year will be qualified for the credit.
Lifetime Learning Credit
The Lifetime Learning Credit (LLC) is for qualified education and related expenses paid for eligible students enrolled in an eligible educational institution. You must qualify the following eligibility criteria in order to claim the credit:
- The eligible student must be you, your spouse or the dependent you mentioned in your tax return.
- You, your dependent or third party pay qualified education expenses for higher education.
- You, your dependent or third party pay qualified education expenses for an eligible student enrolled at an eligible education institution.
IRS Tax Credit Dates 2024
The deadline for filing tax returns of year 2023 is already passed on 15th of April 2024. However, you can still file your tax returns as per the extended deadline of 15th October 2024. The tax refunds can be expected within six to eight weeks after the IRS has approved your tax returns. It is advised to file the tax returns with an all accuracy to avoid a delay in tax refunds to arrive. For more information, you can also visit the official website of the Internal Revenue Service.
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