Tax season is here, and it’s time to file your income tax with the IRS. For many Americans, this can be a stressful process, especially if it’s your first time filing. However, you may not owe as much tax as you think. Tax credits can significantly lower your tax bill, and in some cases, you may even qualify for a refund.
Knowing which tax credits you qualify for can save you thousands of dollars. Many people miss out on valuable credits simply because they aren’t aware they exist. With the tax deadline approaching, now is the time to review your options and maximize your savings.
Table of Contents
Tax Credits
For most taxpayers, filing taxes is relatively straightforward. If you’re an employee, your employer provides you with a W-2 form, which shows your total income and taxes withheld. Even if you don’t owe any tax, you must still submit your W-2 to the IRS.
Why? Because tax credits are based on your income, and you need proof to claim them. Filing for tax credits takes a little extra effort, but it can reduce the amount of tax you owe or even result in a refund.
Most tax credits are designed to help low- and middle-income individuals. Some of the best-known credits include the Child Tax Credit and the Earned Income Tax Credit (EITC), but many taxpayers fail to claim them.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is one of the most valuable yet most overlooked tax credits. One in five taxpayers who qualify for it fail to claim it, meaning millions of Americans miss out on thousands of dollars in potential refunds.
To qualify for the EITC, you must meet specific income requirements based on your filing status and number of children.
Income Limits for the EITC
| Number of Children | Maximum Income |
|---|---|
| No children | $19,104 |
| 1 child | $50,434 |
| 2 children | $57,310 |
| 3 or more children | $61,555 |
If you file as married filing jointly:
| Number of Children | Maximum Income |
|---|---|
| No children | $26,214 |
| 1 child | $57,554 |
| 2 children | $64,430 |
| 3 or more children | $68,675 |
Amount
The amount of EITC refund you receive depends on the number of children you have:
| Number of Qualifying Children | Maximum Credit |
|---|---|
| No children | $649 |
| 1 child | $4,328 |
| 2 children | $7,152 |
| 3 or more children | $8,046 |
If you meet the eligibility criteria, claiming the EITC can significantly reduce your tax bill or even result in a larger refund.
Tax Filing Deadline
The deadline to file your federal income taxes is April 15. However, if you need more time, you can request an extension, which gives you until October 15 to file your return.
If you missed claiming the EITC in prior years, you still have three years to file for it. For example, the deadline to claim the EITC for 2021 is April 15, 2025.
To make things easier, file for any missed EITC credits as soon as possible, so you don’t leave money on the table.
Free Tax Assistance
If you’re unsure how to file your taxes or need help claiming your tax credits, the IRS offers free tax preparation services for eligible individuals. You may qualify for free tax help if you:
- Earn $67,000 or less per year
- Have a disability
- Need language assistance
- Are 60 years or older
You can also visit the IRS website for step-by-step tax filing guides and access their “Where’s My Refund?” tool to track your refund status.
Don’t Miss Out
Tax season doesn’t have to be stressful. By knowing which tax credits you qualify for, you can reduce your tax bill or even receive a larger refund.
The Earned Income Tax Credit is just one of many valuable credits that taxpayers overlook. If you meet the income requirements, take advantage of it and file your taxes before the deadline.
If you need help, don’t hesitate to consult a tax professional or use the IRS’s free resources. Every dollar you save or get refunded is money that can go toward your financial future.
FAQs
What is the deadline to file taxes in 2024?
The deadline to file your 2023 taxes is April 15, 2024. You can request an extension until October 15.
Who qualifies for the Earned Income Tax Credit?
Taxpayers with low to moderate income who meet specific earnings thresholds and have qualifying children, or earn below $19,104 as a single filer with no children.
How much can I get from the Earned Income Tax Credit?
The maximum EITC ranges from $649 for filers with no children to $8,046 for those with three or more children.
Can I still claim tax credits from previous years?
Yes, you have up to three years to claim the Earned Income Tax Credit from prior tax years.
Does the IRS offer free tax assistance?
Yes, the IRS provides free tax help to individuals earning $67,000 or less, seniors, those with disabilities, and those needing language assistance.
