American taxpayers are in luck because the IRS has made some important announcements. More than 78,675,000 citizens have already had their tax returns processed. The average tax refund amount is $3,221, which is 4.6% higher than in 2024. Direct deposits are also higher ($3,284), about 4.2% more than last year.
For your information, the IRS is celebrating the 50th birthday of the Earned Income Tax Credit in the United States. It has helped working families to get out of poverty and thrive. Are you a low-to-moderate income worker? If so, you may qualify for the EITC.
IRS has increased the EITC over time
When President Gerald Ford signed the Tax Reduction Act, EITC became effective in 1975. Back then, it was just up to $400. However, a taxpayer with a low income who qualifies for the full amount can get up to $7,830 in 2025.
Now, there are two things you should do if you would like to know if you qualify for the EITC. In the first place, visit the IRS website and use the EITC assistant. By using it, you will find out if you are eligible or not to get up to $7,830.
Once you have found you are eligible, you should learn how to claim the Earned Income Tax Credit for low-to-moderate income taxpayers. For example, you will have to file Form 1040, U.S. Individual Income Tax Return.
IRS & the EITC worth up to $7,830
If you are a senior, you may need to use Form 1040-SR, U.S. Tax Return for Seniors. Do not forget that if you are claiming the credit for a child that qualifies, you must also file the Schedule EIC (Form 1040 or 1040-SR), Earned Income Credit with your 2024 tax return.
What is more, the Schedule EIC is not required if claiming the credit without a child who qualifies. Once you file and claim the Tax Credit of up to $7,830 you must wait for your refund.
It could be sent to your bank account or to a debit card. Any errors on your return may delay the processing of your tax refund payment. Thus, you should avoid common errors. Use the IRS assistant to determine eligibility. The “Where’s my refund?” tool can also help you see when it will be sent.
Source: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
