The 2023 tax filing season runs from 23 January to 18 April this year. Approximately 168 million Americans are expected to submit a 2022 tax return, the vast majority of which could receive a tax refund.
One of the ways that taxpayers have to get money back from the Internal Revenue Service is by using tax credits, some of which are refundable, meaning any money beyond what you owed in taxes gets tacked onto your tax refund. The Earn Income Tax Credit (EITC) is just one of those. Taxpayers could pocket almost $7,000, but the amount varies depending on earnings and the size of the taxpayer’s family.
Last year, the IRS reports that “as of December 2022, 31 million workers and families received about $64 billion in EITC. The average amount of EITC received nationwide was about $2,043.” Here, we’ll walk you through the requirements for this particular credit.
Remember: An extension to FILE isn’t an extension to PAY. https://t.co/MgVpkMcZGI #IRSTaxTip pic.twitter.com/ZZA4L3rCd1
— IRSnews (@IRSnews) April 17, 2023
File and pay taxes by Tax Day or ask for an extension
First things first though. Remember that you need to file by Tax Day, set as 15 April but in 2023 taxpayers got a break due to that date falling on a Saturday and Monday was a holiday. So this year Tax Day falls on 18 April, by which date taxes must be paid and tax filings submitted.
Those who need more time must request an extension by Tax Day to get six more months to turn in their forms but you won’t get more time to send the IRS unpaid taxes. However, you can set up a payment plan, but you may still have to pay penalties and interest.
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Requirements to receive up to $7,000 for the Earned Income Tax Credit
EITC recipients can receive up to $6,935, almost $7,000. However, the exact amount will depend on the situation of each family or individual applying, such as the number of children one has or annual income.
The #IRS Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break for decades, but it may be brand new to someone you know. Help spread the word about #EITC: https://t.co/AqeTmmH4gx pic.twitter.com/4sjlH20LuL
— IRSnews (@IRSnews) April 17, 2023
Below are the requirements to receive the Earned Income Tax Credit in the United States:
- Have worked and earned income less than $59,187
- Have investment income less than $10,300 in tax year 2022
- Have a valid Social Security number by the due date of your 2021 return
- Be a US citizen or resident alien for the entire year
- Cannot file a Form 2555 (Foreign Earned Income)
EITC refunds do not begin to be issued until the end of February by law. However, the exact date will depend on the moment the taxpayer made their declaration.
The #IRS “Where's My Refund?” tool allows you to quickly and easily check your tax refund status. See https://t.co/PFiedQsvmp pic.twitter.com/74kPwfBm7H
— IRSnews (@IRSnews) April 17, 2023
As an expert in tax regulations and filings, I bring a wealth of knowledge to shed light on the intricacies of the 2023 tax filing season, particularly focusing on the Earned Income Tax Credit (EITC). My expertise is grounded in a comprehensive understanding of tax laws, recent updates, and practical implications for taxpayers. To establish credibility, let me delve into the key concepts presented in the provided article.
Key Concepts in the Article:
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Tax Filing Season Duration (January 23 - April 18, 2023):
- The tax filing season for 2023 spans from January 23 to April 18. This period is crucial for approximately 168 million Americans who are expected to submit their 2022 tax returns.
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Tax Refunds and the Earned Income Tax Credit (EITC):
- A significant portion of taxpayers may be eligible for tax refunds, with one avenue being the Earned Income Tax Credit (EITC). EITC is a refundable tax credit, potentially allowing taxpayers to receive money beyond their owed taxes.
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Magnitude of EITC:
- The article mentions that taxpayers utilizing the EITC could receive up to $7,000, though the actual amount varies based on factors like earnings and family size.
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Previous EITC Statistics:
- According to IRS reports, in the previous year, approximately 31 million workers and families received about $64 billion in EITC. The average amount nationwide was around $2,043.
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Tax Day and Extension:
- Taxpayers are reminded to file by Tax Day, which is typically April 15. In 2023, Tax Day is extended to April 18. Extensions for filing can be requested, providing an additional six months to submit forms, but it doesn't extend the time to pay taxes.
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Requirements for EITC Eligibility:
- To qualify for EITC, individuals or families must meet specific criteria, including:
- Earning income less than $59,187.
- Having investment income less than $10,300 in the tax year 2022.
- Possessing a valid Social Security number by the due date of the return.
- Being a U.S. citizen or resident alien for the entire year.
- Not filing Form 2555 (Foreign Earned Income).
- To qualify for EITC, individuals or families must meet specific criteria, including:
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Timing of EITC Refunds:
- EITC refunds are not issued until the end of February by law. The actual date depends on when the taxpayer submitted their declaration.
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IRS Tools for Taxpayers:
- The article mentions the "Where's My Refund?" tool provided by the IRS, enabling taxpayers to check their tax refund status easily.
By synthesizing these concepts, taxpayers gain a clearer understanding of the timeline, potential benefits, eligibility criteria, and tools available during the 2023 tax filing season, especially concerning the Earned Income Tax Credit. If you have further questions or need guidance on maximizing your tax benefits, feel free to ask.
