Earned income tax credit up to $6,728: who can claim it and how to claim it?

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It has been a difficult two years for many people in the United States, but many taxpayers across the country have been able to get support through various tax credits and help from the Internal Revenue Service (IRS). ). An example is the Earned Income Tax Credit (EITC)), which, according to the IRS, “helps low-to-moderate income workers and families.”

Earned income tax credit: who can claim it and how to claim it

Thanks to the EITC, this year, low-to-middle-income workers can claim $1,502 to $6,728 on their tax return. The amounts of the tax credit depend on the number of children or dependents a taxpayer has, as well as his annual income. The credit can be used to reduce taxes owing or increase the refund payable.

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It should be noted that, due to the coronavirus pandemic, two enhancements are being applied to the EITC in 2022. These are for those without children or dependents who will receive an extension, raise the EITC from $560 to $1,502; and, in addition, eligible taxpayers can invest income earned in 2019the year before the pandemic, on their return if this amount gave them a larger credit.

Tax season has reached a critical point, with people due to file by today, April 18, for the EITC, although this could be extended until October 17.

In summary, here are the different amounts you can receive under the EITC and the income you need to claim the credit on your return:

  • $1,502 for taxpayers without eligible children or dependents
    • If you are a single taxpayer, you must have an income below $21,430. Couples filing jointly must earn less than $27,380.
  • $3,618 with only one child or dependent
    • You qualify if you earn less than $42,158 and file as a single filer or up to $48,108 if you file jointly.
  • 5,980 with two children or dependents
    • To be eligible, you need income below $47,915 as a single filer or up to $53,865 if filing jointly.
  • 6,728 with three or more children
    • You are eligible if you earn less than $51,464 as a single filer or up to $57,414 if you file jointly.

For more details on this and more from the IRS, head over to their official website.


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