After completing your tax return, you may be looking forward to receiving your refund. The Internal Revenue Service (IRS) suddenly informs you that the process will take longer than expected. Can you blame the EITC? Probably.
But don’t worry. We’ll go over everything about this credit, including how to claim it and why we sometimes need to be patient.
The Earned Income Tax Credit (EITC) is like a friend who helps you pay your bills when you’re short on cash. It’s intended for low- or moderate-income workers, especially those with children.
The best part is that it not only reduces the amount you owe the IRS, but if the credit exceeds your taxes, they refund the difference! Of course, there are specific requirements for qualifying, but if you follow them, it can be a significant relief.
Are you a candidate for the EITC? Check these requirements
Before you get too excited, make sure you meet the eligibility requirements to claim the EITC. You must earn money from work (salaries, tips, freelance, etc.). However, there are income requirements to be eligible. The limits for tax year 2024 (reported in 2025) are as follows:
- Childless:
- Single: $17,640
- Married: $24,210
- 1 child:
- Single: $46,560
- Married: $53,120
- 2 children:
- Single: $52,918
- Married: $59,478
- 3 or more children:
- Single: $56,838
- Married: $63,398
These limits apply to 2024 income, which is declared in 2025, so you must ensure that your income does not exceed these limits if you wish to be eligible.
The key point about children is that if you have dependent minors, your credit score will improve. But be careful: the IRS is very specific. A “qualifying child” is a son, brother, grandson, or stepson who has lived with you for more than half a year. and be under the age of 19 (or 24, if studying full-time). If your interest or stock earnings exceed $11,600 (by 2024), you’re done.
Documents and citizenship in order
In this case, all household members must have a valid Social Security Number (SSN), otherwise they will not be considered by the IRS. In addition, everyone must be a citizen or a legal, year-round resident. Military bases overseas are eligible, but not those in Puerto Rico.
If you file as “married separately,” you are not applying. However, if you are separated and meet certain criteria, you may qualify as single. You don’t need a doctorate in taxes. Simply fill out Form 1040 (or 1040-SR if you’re over 65). If you have children, add the Schedule EIC; otherwise, claim it directly in 1040.
Three more tips to have in mind when claiming the EITC:
- Use the EITC calculator at IRS.gov to estimate your credit and avoid errors.
- Keep proof of income, your family’s SSN, and proof that children lived with you (such as medical or school records).
- Did you forget to claim it before? You have up to three years to correct past statements.
If you claim the EITC, the IRS will not release your refund until mid-February, even if you file your return in January. What’s the reason? A law known as PATH requires the IRS to better verify these cases in order to prevent fraud.
An error on your tax return (such as a misspelled SSN or incorrect income) can cause it to be delayed even further. The IRS may request additional documents, which could take several weeks. Therefore, double-check everything before sending.
