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IRS Newswire January 31, 2025
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Issue Number: IR-2025-20
Inside This Issue
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*IRS, national partners launch EITC Awareness Day on 50th anniversary of the Earned Income Tax Credit*
*"EITC has helped"**" America’s working families since 1975"***
WASHINGTON — The Internal Revenue Service and partners around the nation today celebrated the 50th anniversary of the Earned Income Tax Credit (EITC) [ [link removed] ] with the launch of this year’s EITC_ _Awareness Day campaign.
The annual campaign, now in its 19th year, helps increase awareness among the millions of working Americans with a low-to-moderate income who are eligible for the EITC. The IRS estimates that roughly one in five eligible taxpayers miss out on claiming this valuable credit.
EITC was signed into law on March 29, 1975. Through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.
As of December 2024, approximately 23 million workers and families had received about $64 billion total from the EITC, according to IRS statistics [ [link removed] ]. On average, eligible taxpayers received $2,743 from the credit in tax year 2023.
For the past 19 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort to help reach workers eligible for the credit. IRS offers an online social media toolkit [ [link removed] ] with sample text and downloadable graphics to help spread the word about the EITC.
*Who is eligible to claim the EITC?*
Workers may use the EITC Assistant, [ [link removed] ] an online tool, to check their eligibility, which may be affected by changes in marital, parental or financial status. Workers also may visit the Child-related Tax Benefits Comparison page [ [link removed] ] to learn more about basic eligibility rules for the EITC and several other tax credits.
EITC is for workers whose income did not exceed the following limits in 2024:
*No. of Dependents*
*Single Filer Income Limit*
*Married, Filing Jointly Income Limit*
No children
$18,591
$25,511
1 child
$49,084
$56,004
2 children
$55,768
$62,688
3+ children
$59,899
$66,819
*Investment income limit: $11,600
Workers also must:
* Be a U.S. citizen or resident alien all year.
* File a tax return even if their income level doesn’t usually require them to file.
* Have a valid Social Security number (SSN) for themselves, as well as for their spouse, if filing a joint return, and for each qualifying dependent claimed for the EITC.
* File a return without Form 2555, Foreign Earned Income [ [link removed] ].
There are special rules for military personnel, clergy and ministers [ [link removed] ] and taxpayers with certain types of disability income [ [link removed] ] or a child who is disabled.
Eligible workers between the ages of 25 and 64 who have no dependents may receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify for the EITC 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.
*How to claim the EITC*
To get the EITC, workers must file a tax return and claim the credit on that return. They can file in a variety of ways, including by using:
* *IRS Free File* [ [link removed] ]* on IRS.gov.* Qualified taxpayers can prepare and file federal income tax returns online for free using guided tax preparation software. IRS Free File also provides Fillable Forms [ [link removed] ] free online for use by any taxpayer, regardless of income, who is comfortable preparing their own return.
* *Direct File.* [ [link removed] ] An option for eligible people in participating states to prepare and file their federal tax return online for free directly and securely with IRS. Taxpayers have access to live chat support from IRS staff. While Direct File doesn't prepare state returns, if someone lives in a participating state, Direct File guides taxpayers to a state-supported tool to prepare and file their state tax return for free.
* *A reputable tax professional* [ [link removed] ]*. *To help taxpayers avoid unscrupulous “ghost preparers [ [link removed] ],” the IRS offers tips for choosing a trustworthy tax professional [ [link removed] ], whether that’s a certified public accountant, Enrolled Agent, or a trusted person without a professional credential. Taxpayers can check whether someone is credentialed using the Directory of Federal Tax Return Preparers [ [link removed] ], and find information on national tax professional groups [ [link removed] ] at irs.gov.
* *Free tax preparation assistance* [ [link removed] ]*.* There are thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) [ [link removed] ] sites across the country available to help workers eligible to claim the EITC. Taxpayers can find a VITA or TCE site by using the VITA/TCE Locator Tool [ [link removed] ], through the IRS2Go smartphone app [ [link removed] ] or by calling 1-800-906-9887 [ tel:800-906-9887 ].
As a reminder, the quickest way for taxpayers to get their refund is by e-filing an accurate return [ [link removed] ] and choosing to receive that refund via direct deposit [ [link removed] ].
*New this year: Duplicate dependents*
Starting this filing season, the IRS will accept an e-filed return even if a dependent has already been claimed on a separate, previously filed return as long as the primary taxpayer on the second return includes a valid Identity Protection Personal Identification Number (IP PIN) [ [link removed] ].
This change will reduce the time it takes for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns [ [link removed] ]. In previous years, the second tax return had to be filed by paper.
Meanwhile, taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer.
Note that the use of an IP PIN does not exempt taxpayers from receiving notices questioning their right to claim certain dependents.
*Claiming other valuable tax credits*
Whether they qualify for the EITC, taxpayers may be eligible for other valuable tax credits [ [link removed] ], such as the Child Tax Credit (CTC) [ [link removed] ], the Additional Child Tax Credit (ACTC) [ [link removed] ] or the Credit for Other Dependents (ODC) [ [link removed] ]. The Interactive Tax Assistant [ [link removed] ] is a helpful tool for taxpayers to check their eligibility for those credits.
*When to expect EITC refunds*
The “Where’s My Refund?” [ [link removed] ] tool, which allows taxpayers to monitor the status of their refunds, will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 22. Most EITC or ACTC related refunds should be available in bank accounts or on debit cards by March 3 if there are no issues with a taxpayer’s return and they chose to receive their refund by direct deposit.
*Additional resources*
* Celebrating 50 Years of the Earned Income Tax Credit [ [link removed] ]_._
* EITC Central [ [link removed] ]_._
* EITC reports and statistics [ [link removed] ], including participation rates by state [ [link removed] ]_._
* Publication 596, Earned Income Credit [ [link removed] ]_,_ offers a detailed view of the EITC, eligibility rules and instructions on how to claim the credit.
* Other Refundable Credits Toolkit [ [link removed] ].
* @IRSnews [ [link removed] ] and @IRSenEspanol [ [link removed] ], the IRS X news feeds, provide the latest federal tax news and information for taxpayers in English and Spanish.
* IRSvideos [ [link removed] ] available on YouTube that provide information about credits, deductions and tax law changes.
* Get an Identity Protection Personal Identification Number (IP PIN) [ [link removed] ].
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