Texans can earn more on their tax refund from the Earned Income Tax Credit. Here's how
If you're on a tight budget and hoping that your tax refund can give you a boost, the Earned Income Tax Credit could possibly add even more to that tax refund deposit.
Not sure what the EITC is? Here's what you need to know.
According to the Internal Revenue Service, the EITC allows a tax break for people making low to moderate wages. Those who qualify can use the credit to either reduce the taxes they owe or increase their refund.
Per the IRS, approximately 23 million workers and families received $64 billion from the EITC. The average amount of EITC received nationwide in 2023 was $2,743.
To claim this credit, you must file a 1040 federal income tax return. Additionally, if you're claiming the credit for a qualifying child, you must include the Schedule EIC (Earned Income Credit) with your return.
Here's what to know when filing:
The child or children you claim for the credit must be related to you, but grandparents who are raising children can qualify.
The child or children must live in the same home as you do for more than half of the tax year.
For the tax year 2024, the same portion of the earned income tax credit is available for filers with three or more qualifying children with an adjusted gross income up to $59,899 if single and $66,891 if married filing jointly.
Federal income tax returns for 2024 must be filed by April 15, 2025. Americans residing overseas have an extended deadline of June 16, 2025, to file.
The IRS clarifies that the timestamp in your time zone when submitting your electronic return determines its timeliness. For those submitting paper returns, the IRS will consider them on time if they are correctly addressed, have sufficient postage, and are mailed and postmarked by the due date. For electronic filers, the deadline is 11:59 p.m. local time.
This article originally appeared on Austin American-Statesman: What is EITC and who is eligible? What to know before filing in Texas
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