PORTSMOUTH, Va. — Days before the official start of the 2024 tax filing season, the Internal Revenue Service launched its yearly campaign to remind tax filers about the Earned Income Tax Credit (EITC).
What is the Earned Income Tax Credit?
An EITC is a refund available for certain low and middle-income families who may make below a certain threshold.
In 2022, the average EITC amount received was about $2,541. While more than 20 million American workers and families received a total of $57 billion through the credit in 2022, the IRS estimates that one out of every five eligible EITC recipients miss out on the credit.
How much is it worth?
The EITC credits available are based on family size and income.
To adjust for inflation, those totals are higher and in some cases hundreds of dollars more than the brackets in 2022:
Single filers:
- Zero Children-- $17,640 (Eligible for $600)
- One -- $46,560 (Eligible for $3,995)
- Two -- $52,918 (Eligible for $6,604)
- Three --$56,838 (Eligible for $7,430)
Joint filers:
- Zero children: $24,210 a year (Eligible for $600)
- One: $53,120 (Eligible for $3,995)
- Two: $59,478 (Eligible for $6,604)
- Three: $63,398 (Eligible for $7,430)
"A lot of taxpayers think the less money you make, the more it is, but you may actually not have made enough. Maybe you have three children and you’ve only made $12,000 and filed for unemployment. You're not going to get that full credit," Frankie Knox said, who is a Portsmouth tax assistant at Head Start Biz Solutions.
In late 2023, the IRS announced new tax brackets for the upcoming tax filing season to adjust for inflation.
Who is eligible?
For the entire list of who is eligible for the EITC, visit the IRS.
You can also input personal and financial details into the IRS's EITC portal to see if you're eligible.