US residents will obtain a fiscal loan of up to $ 7,830

US Tax Credit

Who Qualifies?

Taxpayers Seek to Maximize Their Refunds

With tax season in full swing, millions of U.S. taxpayers are looking for ways to maximize their refunds.

Or to reduce the amount owed to the IRS.

One of the most effective mechanisms to achieve this is through tax credits.

Some can lower tax liability and even increase refunds in some cases.

New IRS Refunds After Tax Filings

US Residents to Receive a Tax Credit Worth $7,830 – Photo: Shutterstock

In the US, it is important to distinguish tax credits from deductions.

While deductions reduce taxable income, tax credits directly lower the amount of tax owed.

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There are three main types of tax credits: Refundable Credits, Partially Refundable Credits, Non-Refundable Credits.

Refundable credits provide the most benefit.

In the US, a tax credit can reduce tax debt and generate a refund if the credit exceeds the owed amount.

Partially refundable credits allow taxpayers to recover only a portion of the excess.

Non-refundable credits only reduce the tax amount owed but do not generate an additional refund.

One of the most significant tax credits for Americans in 2024 is the Earned Income Tax Credit (EITC).

This tax credit provides financial relief to low- and moderate-income workers in the US.

Eligible taxpayers can receive up to $7,830 if they file their tax return before April 15, 2025.

The exact amount varies depending on the applicant’s financial and family situation.

This is based on two key factors: Marital Status and Income Level.

To qualify, a taxpayer’s Adjusted Gross Income (AGI) must be below $66,819 in 2024.

Additionally, anyone who earned more than $11,600 in investment income or capital gains is automatically disqualified from the program.

Having children is not a requirement for eligibility, though the credit amount increases with the number of dependents in the household.

Applicants to a tax credit must have been US citizens for the entire year of 2024 and possess a valid Social Security Number.

Regarding age requirements, applicants must be between 25 and 65 years old at the time of filing their return.

Tax credits in the US are classified into five main categories:

For Low- and Middle-Income Households, for Individuals with Children, for Retirement Investments.

For Education Expenses and for Eco-Friendly Purchases.

These incentives help ease taxpayers’ financial burdens and encourage specific behaviors, such as:

Purchasing electric vehicles or investing in higher education.

Despite the benefits of tax credits in the US, some experts warn that tax refunds have been lower this year compared to last year.

Recent data shows that approximately eight million taxpayers have already received their refunds.

However, IRS refund amounts have been on average, 32% lower than last year, according to The U.S. Sun.

To avoid delays in receiving refunds, experts recommend: Filing tax returns as early as possible and Ensuring all documents are correctly submitted.

The IRS website provides detailed breakdowns of rules and eligibility for the Earned Income Tax Credit and other tax incentives.

With the April 15, 2025, deadline approaching, taxpayers must review their options and maximize available credits.

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