Ever heard of the Earned Income Tax Credit? We like to call it the IRS’s way of saying, “You’re working hard, here’s a little something back.”
If you have never heard of the EITC before, you are not alone. Every year, tons of people miss out on this credit simply because they did not know it existed or figured it didn’t apply to them. So we are here to clear that up, without boring you with IRS gobbledygook.
What is the Earned Income Tax Credit?
It’s a refundable tax credit. That means if you qualify and your credit is bigger than your tax bill, you actually get the extra back as a refund. Yes, actual money in your bank account. No strings attached.
Who qualifies?
In 2024, the EITC is designed for people who work and do not make a boatload of money. Here is the gist:
- You need earned income… like wages, self-employment income, or tips. (Crypto profits don’t count, sorry.)
- Your income has to be below a certain limit, based on your filing status and how many kids you have.
- You can be single or married, with or without kids.
- If you do not have kids, you must be at least 25 but under 65.
Here’s a super simple 2024 income limit breakdown:
(These numbers go up a bit if you’re married filing jointly.)
How much could you get?
Now for the good stuff.
In 2024, the maximum credit is:
- Up to $632 with no kids
- Up to $4,213 with 1 kid
- Up to $6,960 with 2 kids
- Up to $7,830 with 3 or more kids
Again, this is real money. You could use it to pay off a bill, stash it in savings, or finally treat yourself to a dinner that does not come with a drive-thru bag.
Do not fall for these common mistakes
Every year, people miss out on the EITC because of things like:
- Thinking they can not claim it if they are self-employed (you can).
- Assuming their income is too high (just check).
- Letting software auto-fill everything without reviewing it (you are not a robot, so do not trust one blindly).
So… should you check if you qualify? Absolutely.
The EITC is one of the rare times the IRS actually wants to hand you some money. We say: take it. If you are not sure whether you qualify, let us know. It costs nothing to ask… and you could end up with hundreds (or thousands) back in your pocket.
At Solution 8020, we are not just here for taxes – we’re here for your taxes. We love making confusing stuff make sense, and we are pretty fun to work with, too.
So if you want help checking your EITC eligibility, just reach out. We’ve got your back… and your refund.
