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$7,430 credit from the IRS: Requirements and who is eligible to receive the refund

Tax season is officially underway and the Internal Revenue Service is urging filers to check if they are eligible for one of the most often overlooked tax credits.

The Earned Income Tax Credit is a tax break for low to moderate earners with higher amounts available for those with children. According to the most recent IRS figures, about 23 million workers and families received about $57 billion in EITC for tax year 2022 with an average amount received of $2,541.

The IRS estimates about 20% of eligible taxpayers don’t claim the credit, however.

READ MORE: IRS starts accepting tax returns today: How long will it take to get your refund?

Who is eligible?

To claim the EITC, workers must meet certain requirements and file a tax return, even if their income level falls below the threshold that would require them to file. Income thresholds are $56,838 for individuals and $63,398 for married filing jointly with investment income of less than $11,000 for the tax year. Other requirements include a valid Social Security number, being a U.S. citizen not filing Form 2555 reporting foreign income.

Here are income thresholds and credit amounts for this year:

No children with adjusted gross income of up to $17,640 for single filers or $24,210 for joint filers - $600 maximum credit.
One child with AGI of up to $46,560 for single filers or $53,120 for joint filers - $3,995 credit
Two children with AGI of up to $52,918 for single filers or $59,478 for joint filers - $6,604 credit
Three or more children with AGI of up to $56,838 or $63,398 for joint files - $7,430 credit
The maximum EITC is up from $6,935 in 2022.

Refund delays

Claiming EITC or the Additional Child Tax Credit can delay your tax refund.

Federal law requires additional checks to prevent identity theft for filers claiming the credits. While most tax refunds are available within three weeks, EITC or ACTC filers won’t receive their refunds until at least Feb. 27 if taxpayers chose direct deposit and there are no other issues with the tax return.

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Child Tax Credit 2024 Eligibility: Can you get the child tax credit if you have no income in 2023?

Changes in legislation expanded the spectrum of families that can access credit.

There are seven eligibility criteria to access the child tax credit.

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With tax season right around the corner, many parents are anxious to know how much their child tax credit (CTC) will be. On the other hand, others just want to find out if their income will allow them to access the benefit or even a refund.

For several American families, the CTC is an indispensable part of their economies, either because of the discount they will obtain on their taxes or because of the refunds they can get by applying the additional child tax credit (ACTC).

Families who are low-income or who, for some reason, had no income in the tax year 2023 may feel hard-pressed by not being able to access the CTC. However, a recent change in legislation opened the doors for much-needed relief.

Starting with the 2023 tax year, filed in 2024, families with no income can also apply to the CTC and get a refund of up to $1,600 for each qualifying child.

How much do you have to do to get the Child Tax Credit 2024?

The income limit to obtain the maximum CTC is $400,000 for married people filing a joint return and up to $200,000 for the rest of the filers.

The CTC for taxpayers' modified adjusted gross income above these figures will decrease by $50 for every $1,000 their income exceeds the established limit.

The maximum credit per qualifying child is $2,000, but lower-income or no-income families can apply to ACTC for up to $1,600 in rebates for each qualifying child.

To find out if you are eligible for the ACTC you must fill out Form 8812.

What are the eligibility criteria?

For a child to qualify for the CTC they must:

Be under 17 years of age at the end of the year.
Meet the relationship criteria established by the IRS.
Do not provide more than half of their own financial support per year.

Have lived with the applicant for more than half the year.

Have been a US citizen, a US national, or an alien US resident.

The applicant should not fill out a joint return with her husband or fill it out only to claim the refund of withheld income tax or estimated tax paid.

Merry Christmas

When you look in the mirror 🪞and see Loose lips, anger, bad behavior, hateful, spiteful, arrogance, prideful, condescending, disrespect or such things like these and still think that you have an intimate relationship with Jesus Christ then think again because this isn’t our Heavenly Father nature..You need to check yourself, your prayer life and your Bible intake that you aren’t being deceived by the father of lies & destruction…You relationship with God should be life changing, fulfilling and uplifting even when it’s painful this is a daily routine.. Talking to our God is very important for growth in our spiritual walk with him and we shouldn’t and can’t afford to abandon that…Ask Jesus to be your 🪞mirror so when you take a look at your reflection all you will see is Jesus Christ love.. For God is Love…💕💕💕 I Pray you all have a blessed day and keep God first