IRS Highlights EITC Awareness Day

On January 26, 2024, the IRS launched its annual EITC Awareness Day, an outreach campaign that is designed to help low-to-moderate income taxpayers claim the earned income tax credit (EITC). (IR 2024-22, 1/26/2024)

EITC eligibility.

The EITC is for taxpayers who have earned income, such as wages or self-employment income. Taxpayers who only have unearned income, such as interest, dividends or rents don’t qualify.

In addition to earned income, to claim the EITC, workers must meet certain other requirements and file a tax return, even if they are otherwise not required to file.

The first requirement is that workers must have valid Social Security numbers for themselves, their spouse if filing a joint return, and for each qualifying child claimed for the EITC.

The second requirement is that (for 2023) a worker’s income can’t exceed the following limits:

• $56,838 ($63,398 married filing jointly) with three or more qualifying children
• $52,918 ($59,478 married filing jointly) with two qualifying children
• $46,560 ($53,120 married filing jointly) with one qualifying child
• $17,640 ($24,210 married filing jointly) with no qualifying children

The third requirement is that workers can’t have more than $11,000 of investment income.

Note. Workers without dependent children can’t claim the EITC if they are under 25 or over 64 years old.

In addition, there are special rules for taxpayers in the military, those out of the country, and married taxpayers filing separate returns.

EITC filing options.

Taxpayers claiming the EITC can use Free File on IRS.gov, find a reputable tax professional, or get free tax preparation assistance from VITA or TCE sites.

EITC refunds.

Taxpayers claiming the EITC who file their returns electronically and chose to direct deposit should get their refund by February 27 if there are no issues with their tax return.

Other tax credits.

Workers with children who are claiming the EITC should also check to see if they qualify for other child-related credits, such as the Child Tax Credit, Additional Child Tax Credit or Credit for Other Dependents.

For more information about the Earned Income Tax Credit rules, see Checkpoint’s Federal Tax Coordinator FTC 2d/FIN  ¶ A-4201.