The process of filing income tax returns with IRS is upon us-this is tax season. The time of year can be stressful for many taxpayers, especially for newcomers. You may not owe as much as you think. Tax credits can reduce your tax bill, and, in some cases, may even qualify for refunds.
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
1 Tax Credits
2 Earned Income Tax Credit
3 Income Limits for the EITC
4 Amount
5 Tax Filing Deadline
6 Free Tax Assistance
7 Don’t Miss Out
8 FAQs
Tax Credits
For most taxpayers, filing taxes is relatively straight forward. If you are an employee, your employer will provide you a W-2 form showing your total income and taxes withheld. There is no tax owed, but you still have to submit the W-2 to IRS.
Why? Because tax credits are income-based; in order to claim them, you need proof. Getting tax credits requires some extra work, but it can offset what you owe or, even, get you a nice refund.
Most tax credits are primarily for the support of low- to moderate-income people. Some well-known credits include the Child Tax Credit and the Earned Income Tax Credit (EITC), yet they are often not utilized by taxpayers.
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
1. What is the Earned Income Tax Credit (EITC)?
The EITC is a federal tax credit designed to help low- and moderate-income working individuals and families reduce their tax liability or receive a refund if they qualify.
2. How can I check my EITC refund status?
You can track your refund using the IRS “Where’s My Refund?” tool on the IRS website or by calling the IRS refund hotline at 1-800-829-1954.
3. How much can I receive from the EITC in 2025?
The amount you receive depends on your income, filing status, and number of qualifying children. For 2025, updated credit amounts will be released by the IRS before the tax season begins.
4. When will I receive my Earned Income Tax Credit refund in March 2025?
If you filed early and claimed EITC, the IRS typically begins issuing refunds by early March, but the exact date depends on when your return was processed. Direct deposits are usually faster than paper checks.
5. Why is my EITC refund delayed?
The IRS holds refunds for returns that claim the EITC and the Additional Child Tax Credit (ACTC) until mid-February to prevent fraud. Refunds are generally issued starting in early March if there are no issues with your return.