Unlocking Fast Funds: Qualify for $8,046 Checks with 7 Simple Criteria
According to The Sun, Checks worth thousands could be issued to Americans who meet specific criteria, thanks to the “inflation adjustment” rule established by the Internal Revenue Service (IRS). These adjustments, affecting the 2025 tax year, were confirmed in a press release on Tuesday and will impact taxpayers when they file their returns in early 2026.
Earned Income Tax Credit (EITC) Overview
One significant change involves the Earned Income Tax Credit (EITC), a refundable credit designed to assist low and moderate-income individuals and families, particularly those with children. To qualify for the EITC, filers must meet several essential requirements.
Crucial Criteria for EITC Eligibility
For the 2023 tax returns, six primary criteria must be met to qualify for the EITC:
- Earned Annual Income: Filers must have an annual earned income of no more than $63,398.
- Investment Income: Investment income must be less than $11,000.
- Social Security Number: Filers must possess a valid Social Security number by the due date for 2023 returns.
- Residency: They must be U.S. citizens or resident aliens for the entire year.
- Foreign Earned Income: Filers must not have submitted a Foreign Earned Income form.
- Spousal Requirements: Specific rules apply if the filer has separated from their spouse.
Similar qualifications are expected for the 2025 tax year, with minor adjustments in income limits.
Increased EITC Amounts for Dependents
For those who meet the above criteria and also claim three or more children as dependents, the EITC amount could rise to $8,046 due to the inflation adjustment. This marks a notable increase from the $7,830 available for the 2024 tax year, representing a total difference of $216. Eligible Americans can expect to receive this check or direct deposit around the same time they file their 2025 tax returns.
Also read: Major IRA Rules Change in 2025: What Beneficiaries Need to Know
Additional Inflation Adjustments
The IRS has announced several other categories that will see increases due to the inflation adjustment for the 2025 tax year. These include:
- Alternative Minimum Tax Exemption Amounts
- Qualified Transportation Fringe Benefits
- Health Flexible Spending Cafeteria Plans
- Medical Savings Accounts
- Foreign Earned Income Exclusion
- Estate Tax Credits
- Annual Exclusion for Gifts
- Adoption Credits
However, some areas remain unchanged, including personal exemptions, itemized deductions, and lifetime learning credits.
Filing Taxes for Free
Taxpayers can find more detailed information about the new amounts and adjustments on the IRS website. Additionally, there are at least six ways for eligible taxpayers to file their taxes for free.
Lastly, some taxpayers may also be eligible to claim a portion of a $14.95 million settlement related to privacy issues.
