The EITC Tax Credit Can Give You a Financial Break: How to Apply for It Right Now

Discover if you qualify for the Earned Income Tax Credit, its benefits, and how to claim it correctly in 2025

How to Claim Credit Without Going Crazy: Filing Tips

How to Claim Credit Without Going Crazy: Filing Tips

It may happen that you finish your tax return, you are eagerly awaiting that refund… and suddenly, the Internal Revenue Service (IRS) tells you that it will take longer than normal. Blame the EITC? Probably. But don’t stress. We are going to explain everything about this credit, how to claim it and why sometimes we have to be patient.

The Earned Income Tax Credit (EITC) is like that friend who helps you pay the bill when you’re short on money. It’s designed for low- or moderate-income workers, especially if you have children. The best thing is that not only does it reduce what you owe to the IRS, but if the credit is greater than your taxes, they give you the difference back! Of course, there are clear rules for qualifying, but if you comply, it can be a significant relief.

Are you a candidate for the EITC? Check these requirements

Before you get excited, check if you meet the requirements to claim the EITC. You must have income from work (salaries, tips, freelance, etc.). However, there are income limits to be eligible. For tax year 2024 (reported in 2025), the limits are:

These limits apply to 2024 income, which is declared in 2025, so it is important to verify that your income does not exceed these limits if you want to be eligible. 

The thing about children is key: If you have dependent minors, the credit goes up. But be careful: the IRS is specific. A “qualifying child” must live with you for more than half a year, be your son, brother, grandson, stepson… and be under 19 (or 24 if studying full time). If your interest or stock earnings exceed $11,600 (by 2024), you’re out.

Documents and citizenship in order

In this particular, all household members must have a valid Social Security Number (SSN), because without this number, they could not even be considered by the IRS. Additionally, everyone must be a citizen or legal, permanent year-round resident. Military bases abroad are considered eligible, but not those in Puerto Rico.

If you file as “married separately,” you do not apply. But if you are separated and meet certain conditions, you could count as single. Don’t worry, you don’t need a doctorate in taxes. Simply file Form 1040 (or 1040-SR if you are over 65). If you have children, add the Schedule EIC; If not, claim it directly in 1040.

Three more tips to have in mind when claiming the EITC:

Here’s the spoiler: If you claim the EITC, the IRS won’t release your refund until mid-February, even if you submit your return in January. The reason? A law called PATH forces the IRS to better verify these cases to stop fraud. An error on your return (such as a misspelled SSN or incorrect income) can delay it even further. The IRS could ask you for extra documents, and that adds up to weeks. Therefore, double check everything before sending.

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