Yes, for the 2024 tax year, the IRS Earned Income Tax Credit (EITC) offers a maximum credit of up to $7,830 for eligible low-to-moderate-income working individuals and families. This refundable credit is designed to boost income for workers, with the amount based on income, filing status, and number of qualifying children.
The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund. For tax year 2023, the EITC is as much as: $7,430 for a family with three or more children.
Key Takeaways. If you earned less than $68,675 (if Married Filing Jointly) or $61,555 (if filing as Single, Qualifying Surviving Spouse or Head of Household) in tax year 2025, you may qualify for the Earned Income Credit (EIC).
The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.
In 2025, the federal poverty level definition of low income for a single-person household is $15,650 annually. Each additional person in the household adds to the total. For example, the poverty guideline is $32,150 per year for a family of four.
The median household income in Los Angeles is around $76,135, according to the U.S. Census Bureau, meaning $70K puts you slightly below that midpoint. Likewise, the average salary in LA varies by industry but generally ranges from $65K–$85K, depending on role and experience.
You likely received $1400 from the IRS today as a supplemental payment for the 2021 Economic Impact Payment (EIP3), specifically the Recovery Rebate Credit, for people who missed it by not claiming it or leaving it blank on their 2021 tax return. These are "plus-up" payments for those eligible for the third stimulus but didn't get the full amount, often for dependents or due to income changes, with a deadline to claim it by April 2025 by filing a 2021 return if you hadn't already.
About LITC
In order to qualify for assistance from an LITC, generally a taxpayer's income must be below a certain threshold, and the amount in dispute with the IRS is usually less than $50,000.
Yes, the IRS Earned Income Tax Credit (EITC) offers up to $7,830 for low-to-moderate income families for tax year 2024, a significant boost for eligible working individuals and families, with the amount depending on income, filing status, and number of children, and it's a refundable credit that can result in a large refund even if no taxes are owed.
You're disqualified from the Earned Income Tax Credit (EITC) for having income over the limit, exceeding the investment income cap (e.g., $11,950 in 2025), not having a valid Social Security Number, being a non-citizen/resident alien, claiming the Foreign Earned Income Exclusion, or filing as married filing separately unless you meet specific rules. Other disqualifiers include not meeting age requirements (generally 25-64), being a dependent of someone else, or having prior EITC disallowed due to fraud/error.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
To get the EITC for the 2025 tax year (for tax returns filed in early 2026), your income has to be below the following levels: $61,555 ($68,675 if married filing jointly) with three or more qualifying children.
You're disqualified from the Earned Income Tax Credit (EITC) for having income over the limit, exceeding the investment income cap (e.g., $11,950 in 2025), not having a valid Social Security Number, being a non-citizen/resident alien, claiming the Foreign Earned Income Exclusion, or filing as married filing separately unless you meet specific rules. Other disqualifiers include not meeting age requirements (generally 25-64), being a dependent of someone else, or having prior EITC disallowed due to fraud/error.
The federal poverty level and taxes
For example, in 2025, a single parent with one child would be considered in poverty with a family income of less than $21,150 using the federal poverty guidelines for the 48 contiguous states. The amounts are higher for Alaska and Hawaii.
How an offer in compromise works. This is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed. The goal is a compromise that's in the best interest of both the taxpayer and the agency. The offer in compromise application includes a fee of $205 and an initial payment.
Single filers: You qualify for the full $1,400 if your AGI in 2021 was $75,000 or less. The credit begins to decrease for incomes over $75,000 and is fully phased out at $80,000. Married filing jointly: You qualify for the full $2,800 (for two people) if your combined AGI in 2021 was $150,000 or less.
It could be: A refund from a filed tax return, including an amended tax return or an IRS tax adjustment to your tax account – this will show as being from the IRS (“IRS TREAS 310”) and carry the code “TAX REF.”
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
The IRS will never initiate contact demanding immediate payment via gift cards, prepaid debit, or wire transfers; threaten immediate arrest or deportation; or contact you first by email, text, or social media; these tactics, especially involving urgent demands for specific payment types or threats, are key signs of a tax scam, as the IRS always mails a bill first and allows time to appeal.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly, most audits will be of returns filed within the last two years. If an audit is not resolved, we may request extending the statute of limitations for assessment tax.