Millions of Americans must claim $7,830 ‘earned’ payments before the April 15 deadline Any taxpayer filing in the US will do so by 15 April. In this context, many have already tendered taxes, but for others who have not yet filed taxes, there is one last chance; they can use some tax credits from the federal government, which will lead to a direct cash refund.
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Earned Income Tax Credit (EITC) – A huge benefit
One of the most important tax refunds to which it is entitled is the Earned Income Tax Credit or EITC. This credit is only given to low-and-middle-income individuals. In 2024, eligible applicants can be awarded as much as $7,830.
According to the IRS, EITC is unclaimed by more than 11 lakh Americans for the 2021 tax year. For that year, the EITC amount was available as high as $6,728, and the deadline must also be claimed by April 15.
Who qualifies to claim EITC?
EITC would not be accessible to everyone; it has conditions to establish entitlement:
- Your filing status – single, married filing jointly, head of household, therefore, etc.
- Your Adjusted Gross Income (AGI)
The number of your children
The maximum limit of AGI for people who do not have any children in 2024 would be $18,591. If you are married and filing jointly this limit becomes $25,511. The other side of the limit can reach $66,819, considering having three or more children by which he could claim a maximum EITC of $7,830.
Less earnings, more benefits – effects of the number of children.
The amount of EITC also depends on the number of your dependents. The greater the number of children, the higher the amount of EITC can be. For example:
- no children: low amount
- 1 or 2 children: medium amount
- 3 or more children: maximum amount
Tax season 2025 dates, refunds, and extensions.
The 2025 tax season, which began on January 27 and will come to a close on April 15, has the last penalty date for those who fail to submit by that day.
By applying for a tax filing extension, you can gain additional time; for this, you need to fill in Form 4868, and you can either mail it in or submit it online or through a tax professional. If you are granted an extension, your new due date will be October 15.
Refund-when and how much?
According to the IRS, a refund can come about within 21 days of filing your taxes, but it really depends on how accurately your return has been constructed and further, how it was processed. Having said that, if mail is involved, it may take a little longer. It could take until the end of the month or longer.
As of Jan. 31, 2025, the average tax refund amount was $1,928, although in the same period in 2024, the average was only $1,395. Those who opted for direct deposit receive an amount that may be up to $2,069 on average.
How to check the refund status?
Also, the IRS provides a tool called Where’s My Refund? that shows your refund status.
- If e-filed, you can expect an update in 24 hours.
For those filing on paper, expect to hear back in about four weeks.
Some essential eligibility
- Some other conditions are also required to claim EITC:
- Must have a valid Social Security number
- Must be a citizen or resident of the US during the tax year
- Your investment income must be less than a certain limit
EITC is a fully refundable credit, that is, if your tax liability is less, then you can get the remaining money in the form of a cash refund.
The reason the refund gets reduced
The IRS says that on average, refunds will be 32% less than last year. This is because a lot of people can no longer claim tax credits or are making mistakes filling out the forms.
Hence, exercise caution while filling out the form. A mistake could result in delayed processing and a corresponding delay in refund.
File before April 15 or lose out
File before April 15 if you want to claim EITC or get any refund associated with your taxes. The delay comes with a penalty and loss of benefits.
Conclusion
Earned Income Tax Credit is a huge relief for millions of middle and low-income Americans. It provides a monetary cushion and allows people to save money later in the form of a refund. So, if you are one of those who have not yet filed your taxes, do so now because April 15 is your final date- fill-up the form, claim the credit, and get your money back.
For any kind of help, well-wishers don’t leave a single leaf unturned to get something from a tax professional.
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FAQs
Q1. What is the $7,830 ‘earned’ payment being referred to?
A. The $7,830 refers to the Earned Income Tax Credit (EITC) — a refundable tax credit for low- to moderate-income workers. Eligible taxpayers can receive up to $7,830 based on income, filing status, and number of dependents.
Q2. Do I need children to qualify?
A. No. You can qualify even without children, but the credit amount is much higher with qualifying children.
Q3. What’s the deadline to claim this money?
A. You must file your 2023 federal tax return by April 15, 2024, to claim the EITC for that year.