Earned income tax credit
The earned income tax credit, or EITC, is intended for workers with low to moderate incomes. To qualify for tax year 2023, you must have a Social Security number, be a citizen or resident alien, have a certain amount of earned income, not have foreign income, and have less than $11,000 in investment income. How much your EITC is depends on how many eligible children you have (the more kids/relatives you claim, the higher your income and credit can be). For 2023, the maximum EITC without kids is $600. With one child, it’s $3995; with two, it’s $6604. For three or more children, it’s $7430. Remember that if you claim the EITC or additional child tax credit (mentioned above), the IRS is legally obligated to hold onto your tax refund until mid-February.