As tax season approaches, millions of Americans may miss the (EITC) Earned Income Tax Credit 2024. Recent IRS figures show that approximately 20% of eligible people neglect this credit, which might bring significant financial assistance.
Earned Income Tax Credit 2024: Millions of Americans Missing Out on Valuable Tax Break (Photo from: Yahoo Finance)
The Value of the Earned Income Tax Credit 2024
In 2022, approximately 23 million taxpayers received a combined $57 billion from the Earned Income Tax Credit 2024 to support low- to moderate-income individuals and families. However, roughly 20% of eligible taxpayers still need to claim this credit, which averaged $2,541 per recipient last year, IRS Commissioner Danny Werfel revealed in a recent press briefing.
For 2023, families with three or more children can claim a maximum EITC of $7,430, up from $6,935. The credit, which provides up to $600 even without a qualified kid, saves eligible workers between 25 and 64.
However, navigating the eligibility requirements for the EITC can be intricate, with specific income thresholds and qualifying child guidelines to consider. Despite its complexity, the IRS urges taxpayers to utilize resources such as Free File programs and tax professionals to claim the credit accurately.
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Addressing Improper Payments and Racial Disparities
Concerns persist regarding the high improper payment rate associated with the Earned Income Tax Credit 2024, leading to audits and disparities in claimants’ experiences. While millions of eligible taxpayers fail to claim the credit, others mistakenly claim amounts they are not entitled to, exacerbating the issue of improper payments highlighted by the National Taxpayer Advocate Erin Collins.
Moreover, a December report from the Bipartisan Policy Center underscores the disproportionate audit rates faced by Earned Income Tax Credit 2024 claimants, with Black Americans experiencing audits at rates three to five times higher than the rest of U.S. filers. The IRS acknowledges these disparities and has committed substantial resources to address the issue, as confirmed by a 2023 Stanford University study.
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