$7,830 IRS credit: What to know about qualifying for the Earned Income Tax Credit – AL.com

The Internal Revenue Service is reminding tax filers about a key credit worth up to $7,830.

The federal Earned Income Tax Credit is designed for low to moderate-income wage earners and is fully refundable, meaning even those who do not earn enough money to have taxes withheld are eligible.

The credit is often overlooked, the IRS said, with roughly one in five eligible taxpayers missing out on claiming the credit. As of December 2024, some 23 million workers and families had received about $64 billion in total from EITC, with the average eligible taxpayer receiving $2,743 from the credit in tax year 2023.

READ MORE: If you earn less than $84,000, you can benefit from these free IRS tax filing programs

Who is eligible?

EITC is for workers whose income does not exceed the following limits:

Single filer income limits

• No children – $18,591
• 1 child – $49,084
• 2 children – $55,768
• 3-plus children – $59,899

Married filing jointly income limits

• No children – $25,511
• 1 child – $56,004
• 2 children – $62,688
• 3-plus children – $66,819

The investment income limit is $11,600.

Filers must also be U.S. citizens or resident aliens; file a tax return even if their income level doesn’t require them to do so; have a valid Social Security number, as well as one for their spouse if they are filing a joint return, and for each qualifying dependent; and file a return without Form 2555, Foreign Earned Income.

There are special rules for military personnel, clergy and ministers and taxpayers with certain types of disability income or a child who is disabled.

You can use an IRS tool to determine your eligibility.

How much can you receive?

Eligible workers between the ages of 25 and 64 who have no dependents can receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify if they meet certain requirements.

Those with qualifying children can receive a maximum of $7,830 when claiming the EITC for tax year 2024, up from $7,430 in tax year 2023.

READ MORE: Where is my tax refund? How long will it take to get my money in 2025?

Be prepared to wait for EITC refund

Most taxpayers who file electronically with direct deposit will receive their refund within 21 days of submitting their return. Filers claiming EITC and the Additional Child Tax Credit will wait longer, however, due to a federal law that requires additional checks related to identity theft.

Most EITC or ACTC-related refunds should be available in bank accounts or on debit cards by March 3 as long as there are no issues with a taxpayer’s return and with direct deposit.

You can track your refund using Where’s My Refund?