Tax season is officially underway, and the Internal Revenue Service (IRS) is reminding New Yorkers to check if they are eligible for one of the most often overlooked tax credits – the Earned Income Tax Credit (EITC).

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This tax break is designed to benefit low to moderate earners, with higher amounts available for those with children. Unfortunately, the IRS estimates that about 20% of eligible taxpayers do not claim this credit, leaving potential money on the table.

According to the most recent figures released by the IRS, approximately 23 million workers and families received approximately $57 billion in EITC for the tax year 2022. The average amount received was $2,541, providing a significant boost to many households.

To be eligible for the EITC, workers must meet certain requirements and file a tax return, even if their income falls below the threshold that would typically require them to file.

For the tax year 2023, the income thresholds are $56,838 for individuals and $63,398 for married couples filing jointly, with investment income of less than $11,000. Additionally, applicants must have a valid Social Security number and be U.S. citizens, not filing Form 2555 reporting foreign income.

The credit amounts vary based on the number of qualifying children and adjusted gross income (AGI). Here are the income thresholds and credit amounts for this year:

Threshold For No Children

AGI of up to $17,640 for single filers or $24,210 for joint filers – maximum credit of $600.

Threshold For One Child

AGI of up to $46,560 for single filers or $53,120 for joint filers – credit of $3,995.

Threshold For Two Children

AGI of up to $52,918 for single filers or $59,478 for joint filers – credit of $6,604.

Threshold For Three or More Children

AGI of up to $56,838 for single filers or $63,398 for joint filers – credit of $7,430.

It's important to note that claiming the EITC or the Additional Child Tax Credit (ACTC) may delay your tax refund. Federal law requires additional checks to prevent identity theft for filers claiming these credits.

While most tax refunds are typically available within three weeks, EITC or ACTC filers won't receive their refunds until at least February 27th if they choose direct deposit and there are no other issues with their tax return. To track the status of your refund, visit the IRS "Where’s My Refund?" tool, which will be updated by February 17th for credit filers.

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