The Earned Income Tax Credit (EITC) has been helping low-to-moderate income workers for 50 years. It was signed into law by President Gerald Ford on March 29, 1975. The EITC has grown from a modest credit of $400 in 1975 to a maximum of $7,830 in 2024.
As of December 2024, about 23 million workers and families benefited from the EITC. The credit continues to provide financial help to working families and individuals, with or without children. It assists them in covering essentials, saving for the future, and building financial stability.
To claim the EITC, you must meet certain criteria. These include having earned income, meeting income and AGI limits, having investment income below $11,600, and having a valid Social Security Number. If claiming the credit with qualifying children, the child must meet relationship, age, residency, and joint return requirements.
Children must be under 19, under 24 if a full-time student, or any age if permanently disabled.
EITC marks milestone in support
To claim the EITC, gather necessary documents like W-2s, 1099s, and Social Security Numbers.
File your tax return using Form 1040 or 1040-SR and Schedule EIC if you have qualifying children. Double-check all information, as the IRS rejects many EITC claims due to simple mistakes. E-filing with direct deposit can get you your refund in as little as 21 days.
You can get free tax filing help if your income is under $79,000. The IRS sponsors Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. The EITC is refundable, meaning you can get money back even if you owe no taxes.
However, if you incorrectly claim the EITC, you may have to repay it and could be barred from claiming it for 2 to 10 years. Workers without children can also qualify for the EITC if they meet income and age requirements. Undocumented immigrants cannot claim the credit, as a valid Social Security Number is required.
