Deadline approaching for $7,830 Earned Income Tax Credit

Millions of Americans have a final opportunity to claim a one-time payment through the Earned Income Tax Credit (EITC) this tax season. This credit could provide up to $7,830 for eligible taxpayers, helping them during a critical financial period. As the April 15 filing deadline approaches, it's important for those who have not yet filed their tax returns to explore available credits. The EITC can significantly lower the amount owed to the IRS. Recent data shows that over 1.1 million Americans still have unclaimed EITC funds from 2021, totaling about $1 billion. To qualify for the EITC, taxpayers must have a low to moderate income and meet specific criteria regarding filing status and adjusted gross income (AGI). There are five filing statuses that can help individuals qualify, such as single, married filing jointly, and head of household. For those with no children, the AGI must be below $18,591 to qualify for any EITC payment. The current tax season began on January 27, and returns must be submitted by April 15. Late filers may face penalties but can request an extension until October 15 by filing Form 4868. The IRS typically processes refunds within 21 days for e-filed returns, while mailed returns may take longer. Refund amounts this year average $1,928, showing an increase from the previous year. For joint filers with three or more dependents, the maximum AGI to qualify for the EITC is $66,819, which would yield the full $7,830 amount. It's essential for taxpayers to ensure they do not exceed the AGI limits. In addition to meeting income requirements, EITC claimants must have a valid Social Security number and meet other criteria. The credit is refundable, meaning any unused portion adds to the taxpayer’s refund. Overall, understanding these details can help eligible Americans take advantage of this significant tax credit before the deadline.