It’s official. The tax return season in the United States is now underway. The Internal Revenue Service (IRS) has announced that between January 27 and April 15 it expects to receive and process more than 140 million returns from taxpayers. Therefore, now is the time to verify whether citizens qualify for valuable tax credits that could increase their refund. However, it is important that income be reported by the final date to avoid penalties from the Social Security administrations.
In this sense, according to the rules established by the IRS, among the most important and beneficial credits available to taxpayers in the United States is the Earned Income Tax Credit (EITC), which can provide eligible taxpayers with up to $7,830 in refundable tax relief. This measure will help to prevent situations of vulnerability for certain groups who suffer the economic suffocation of the rising cost of the products in their shopping basket.
What is the Earned Income Tax Credit?
The EITC is designed to help low- to moderate-income workers by reducing their tax liability and, in many cases, increasing their refunds. Along these lines, to qualify for this credit and assistance from the Internal Revenue Service, taxpayers must meet certain IRS requirements:
- Earned income below the IRS limit.
- Investment income below the IRS threshold.
- A valid Social Security number before the tax return due date.
- U.S. citizenship or resident alien status for a full year.
- Form 2555 (Foreign Earned Income) cannot be filed.
Thus, the final amount of your refund from the Earned Income Tax Credit depends on the size of your household and the number of qualifying children. Also, because the EITC is refundable, eligible taxpayers can receive a refund even if they owe little or no tax.
- No children: up to $632
- One child: up to $4,213
- Two children: up to $6,960
- Three or more children: up to $7,830
Deadline to receive the $8,000 refund from the IRS
The Internal Revenue Service generally processes tax refunds within 21 days for electronically filed returns with direct deposit. However, those filing EITC returns should expect longer due to the additional processing delay. Nevertheless, this tax credit, which ends on April 15, can provide significant relief for the economy of many households.
Thus, according to the US Internal Revenue Service itself, taxpayers who apply for the EITC can expect to receive their refunds as of February 27 , provided they have filed their return electronically and have chosen direct deposit. However, the IRS has also announced that paper returns or checks sent by mail may take an additional six to twelve weeks to process.
