IRS Tax Refund Update as Credits Are Paid Out

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Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property insurance market, local and national politics. She has previously extensively covered U.S. and European politics. Giulia joined Newsweek in 2022 from CGTN Europe and had previously worked at the European Central Bank. She is a graduate in Broadcast Journalism from Nottingham Trent University and holds a Bachelor's degree in Politics and International Relations from Università degli Studi di Cagliari, Italy. She speaks English, Italian, and a little French and Spanish. You can get in touch with Giulia by emailing: g.carbonaro@newsweek.com.

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The Internal Revenue Service (IRS) started sending tax refund returns for the 2024 tax season on Tuesday, February 27, with thousands of Americans estimated to be eligible to receive the extra stimulus check—as long as they apply for it.

Taxpayers who qualify for the IRS Earned Income Tax Credit (EITC) can claim up to $7,430, as the tax credit they receive to supplement their wages is refundable. Families and individuals with an income from low to moderate levels can qualify for EITC and use the credit to reduce their taxes—effectively getting a tax break—and they may be eligible for a refund even when they have no outstanding tax obligations.

But, according to the IRS, many taxpayers who are eligible for the EITC don't know about this opportunity. The revenue service estimates that four of five eligible taxpayers claim and get the EITC, but "millions of workers" are missing out on the benefits of refundable credits each year.

Newsweek contacted the IRS for comment by email on Wednesday outside of normal working hours.

Tax Return
The amount you owe line on income tax return forms, cash and a calculator. Millions of Americans claiming EITC are expected to receive checks of up to $7,430 in the mail. Getty Images

The IRS said that the Center on Budget and Policy Priorities estimated that in 2018 the EITC lifted 5.6 million people above the poverty line, including nearly 3 million children. Together with the Child Tax Credit, the EITC lifted 10.6 million people above the Supplemental Poverty Measure (SPM) line and made poverty less severe for 17.5 million others in the same year.

Read more: The Child Tax Credit: Who Qualifies and How to Claim It

But who's eligible for the EITC? This year's basic requirements are having worked and earned an income under $63,398; having investment income below $11,000 in the tax year 2023; having a valid Social Security number; being a U.S. citizen; and not filing Form 2555 to report foreign income. There are other special qualifying rules for military members, clergy and taxpayers and their relatives with disabilities.

The amount of EITC varies according to the number of dependents or children people may have, as well as their tax filing status. Families and individuals still need to file a tax return to be considered eligible for the program. You can find all requirements on the IRS website.

According to the latest data from the IRS, about 23 million workers and families received roughly $57 billion in EITC for the tax year 2022, with the average amount received by taxpayers of about $2,541.

Those eligible for this year's refund will get the $7,430 check by mail. The IRS warns that applying for the EITC may delay the issuing of refunds, so not all those who have applied to receive the stimulus might receive it on the same day.

Website Tododisca recommends ticking the option "direct deposit" as the collection method for the credit in order to receive the check as soon as possible, as well as making sure there are no mistakes in your tax return.

You can check the status of your tax refund on the IRS website page "Where's My Refund?"

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About the writer

Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property insurance market, local and national politics. She has previously extensively covered U.S. and European politics. Giulia joined Newsweek in 2022 from CGTN Europe and had previously worked at the European Central Bank. She is a graduate in Broadcast Journalism from Nottingham Trent University and holds a Bachelor's degree in Politics and International Relations from Università degli Studi di Cagliari, Italy. She speaks English, Italian, and a little French and Spanish. You can get in touch with Giulia by emailing: g.carbonaro@newsweek.com.

Writers Page

Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property ... Read more