QUALIFYING Americans can get a one-time payment worth thousands.
Time is running out to claim the tax assistance.
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With the deadline to file taxes coming up, many Americans have already filed their returns.
However, individuals who have still not filed should be aware of tax credits they can take advantage of.
Certain credits can significantly reduce what is owed to the Internal Revenue Service (IRS).
This includes the Earned Income Tax Credit (EITC).
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The EITC could provide up to $7,830 for eligible individuals this year.
The IRS also reported that over 1.1 million Americans have yet to claim their EITC from the 2021 tax year.
EITC is typically available to low- and moderate-income taxpayers with children.
The amount depends on two key factors: filing status and adjusted gross income (AGI).
Eligible filing statuses include single, married filing jointly, married filing separately, head of household, and qualifying surviving spouse.
For 2024, those with no children must have an AGI of no more than $18,591 to qualify for EITC.
Married joint filers with no children must have an AGI of no more than $25,511.
The maximum AGI for a married joint filer with three or more dependents is $66,819.
This qualifies them for the highest EITC amount of $7,830.
For the 2021 tax year, EITC claims worth up to $6,728 remain unclaimed, with a similar deadline of April 15 for late tax returns.
2025 Tax Season
Tax season started on January 27 and folks must have theirs completed filed on April 15.
Those who fail to file by that time may face penalties.
However, taxpayers who need more time may file for an extension – this gives them until October 15.
The way to do this is by filling out Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
This can be done by mail, online with an IRS e-filing partner, or through a tax professional.
While there’s no set schedule, the IRS revealed that taxpayers may receive refunds within 21 days of filing.
Just be sure to avoid making mistakes on any forms as that could tack on extra time.
Those filing through mail will likely get their returns within a month or could even face delays as the IRS processes millions.
As of January 31, the average refund amount totaled $1,928, per the IRS.
This is compared to the $1,395 for the same period in 2024.
The average direct deposit refund for 2025 was even higher, the IRS said, at $2,069.
To check the status of your refund, The IRS has an online tool called Where’s My Refund?
This works within 24 hours of e-filing and generally within four weeks of filing a paper return.
EITC amounts decrease for those with fewer dependents.
For single filers or those filing as head of household, the EITC will be smaller.
Key eligibility requirements include a valid Social Security number, U.S. citizenship or residency for the entire tax year.
It also requires investment income under certain limits.
The EITC is refundable, meaning any leftover amount will be added to a refund.
However, refunds issued this year are, on average, 32% lower than in 2024.
Taxpayers needing more time can file for an extension before the April 15 deadline.
