It's the middle of tax season, which ends on April 18, and if you haven't filed or are in the middle of filing taxes, you might qualify for some relief.
Some U.S. residents are eligible for credits worth up to $560 - $6,935, and if you already went through the process for 2022, you can be on the lookout for this year.
It's called the Earned Income Tax Credit and it can cut you a break on what you might owe to the IRS or even increase your return. Whether you have kids will also affect the credit.
What is the Earned Income Tax Credit?
The EITC helps low-to-moderate-income individuals get a reduction on their taxes and can even increase the money they get back from the IRS.
You have to be within a certain income limit and follow the filing guidelines to be eligible.
Who is eligible for the Earned Income Tax Credit?
The IRS website states that this credit applies to you if you make under $59,187/year. According to the U.S. Bureau of Labor & Statistics, the median salary for Americans was about $55,042 in 2022.
You must also have an investment income of $10,300 or less for 2022 and be a U.S. citizen or resident with a valid Social Security number.
What is the Earned Income Tax Credit amount?
The Earned Income Tax Credit AGI table for 2022.
First, you need to look at how you're filing, how many children you have and your Adjusted Gross Income (listed in the table above).
Your AGI, according to the IRS, is your "gross income minus adjustments to income." Earned income includes your job wages, salary, and tips, as well as any other taxable payments from your employer. Adjustments to income include things like student loan interest and contributions to your retirement account.
With no kids, when filing as single, head of household, or widowed, you must have an AGI at or below $16,480. When filing jointly as married, it must be at or below $22,610.
This group of individuals can get credited $560.
With one kid, when filing as single, head of household, or widowed, you must have an AGI at or below $43,492. When filing jointly as married, it must be at or below $49,622.
This group of individuals can get credited $3,733.
With two kids, when filing as single, head of household, or widowed, you must have an AGI at or below $49,399. When filing jointly as married, it must be at or below $55,529.
This group of individuals can get credited $6,164
With three or more kids, when filing as single, head of household, or widowed, you must have an AGI at or below $53,057. When filing jointly as married, it must be at or below $59,187.
This group of individuals can get credited $6,935.