Once a year, the IRS typically modifies credit amounts. The Earned Income Tax Credit is no exception.Therefore, the maximum amount of the EITC that you can receive in 2024 if you have three or more eligible children is $7,830. If you have three or more qualified children in the tax year 2025, it will now be $8,046 due to the cost of living change.
The IRS has significantly increased the EITC amounts since 2020. The 2020 EITC maximum for individuals with three or more eligible children was a meager $6,660.
New IRS maximum amounts for EITC Tax Year 2025
For the 2025 tax year, the maximum Earned Income Tax Credit is:
If you have no qualifying children, you might be eligible for the lowest possible EITC amount in the 2025 tax year. Compared to $632 in the 2024 Tax Year, it will now only be $649.
Even if they only have one child, some taxpayers can still be eligible for the EITC. For a single qualified child, the Earned Income Tax Credit has increased from $4,213 to $4,328.
The price increase is merely $17 for those without children. The cost has increased by $115 for individuals with a single child.
IRS and the new EITC amounts for 2025 with more than 1 child
In this instance, the tax credit is significantly larger if you have children who are eligible. The IRS has announced the maximum EITC amount that a taxpayer with two children can receive for the 2025 tax year. It comes to $7,152.
The EITC is $6,960 for individuals with two qualifying children for the 2024 tax year. The boost is therefore worth $192. If you qualify, it’s a substantial increase.
The EITC will be highest for those with three or more eligible children. Instead of $7,830, they will receive up to $8,046 for the 2025 tax year.
To find out if you qualify for the Earned Income Tax Credit, simply utilize the IRS’s online EITC Assistant.
This information was obtained from https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables
See Also: Millions of Americans receive a warning from the IRS They have till the end of the year to complete this.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.