The 2023 tax filing season runs from 23 January to 18 April this year. Approximately 168 million Americans are expected to submit a 2022 tax return, the vast majority of which could receive a tax refund.
One of the ways that taxpayers have to get money back from the Internal Revenue Service is by using tax credits, some of which are refundable, meaning any money beyond what you owed in taxes gets tacked onto your tax refund. The Earn Income Tax Credit (EITC) is just one of those. Taxpayers could pocket almost $7,000, but the amount varies depending on earnings and the size of the taxpayer’s family.
Last year, the IRS reports that “as of December 2022, 31 million workers and families received about $64 billion in EITC. The average amount of EITC received nationwide was about $2,043.” Here, we’ll walk you through the requirements for this particular credit.
File and pay taxes by Tax Day or ask for an extension
First things first though. Remember that you need to file by Tax Day, set as 15 April but in 2023 taxpayers got a break due to that date falling on a Saturday and Monday was a holiday. So this year Tax Day falls on 18 April, by which date taxes must be paid and tax filings submitted.
Those who need more time must request an extension by Tax Day to get six more months to turn in their forms but you won’t get more time to send the IRS unpaid taxes. However, you can set up a payment plan, but you may still have to pay penalties and interest.
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Requirements to receive up to $7,000 for the Earned Income Tax Credit
EITC recipients can receive up to $6,935, almost $7,000. However, the exact amount will depend on the situation of each family or individual applying, such as the number of children one has or annual income.
Below are the requirements to receive the Earned Income Tax Credit in the United States:
- Have worked and earned income less than $59,187
- Have investment income less than $10,300 in tax year 2022
- Have a valid Social Security number by the due date of your 2021 return
- Be a US citizen or resident alien for the entire year
- Cannot file a Form 2555 (Foreign Earned Income)
EITC refunds do not begin to be issued until the end of February by law. However, the exact date will depend on the moment the taxpayer made their declaration.
