The IRS Earned Income Tax Credit (EITC) is one of the most valuable benefits for low- to moderate-income workers, offering tax savings that could result in refunds as high as $7,830 in 2024. If you’re a veteran or active-duty service member, you might be wondering if you’re eligible to benefit from this credit. The good news is that you may qualify—provided you meet certain conditions. Here’s a breakdown of everything you need to know.
What Is the EITC and How Much Can You Get?
The EITC is designed to reduce the tax burden on working individuals and families while helping them secure larger refunds. For the 2024 tax year, the credit ranges from $632 for workers with no children to $7,830 for those with three or more qualifying dependents. The amount you receive depends on your income and family size.
Veterans and military members are not automatically excluded from this benefit—in fact, many qualify and are encouraged to claim it.
Who Is Eligible?
To be eligible for the EITC as a veteran or active-duty service member, you’ll need to meet the following general requirements:
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Earned Income Requirement: You must have earned income from employment, self-employment, or other qualifying activities. This includes wages, salaries, tips, or military pay.
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Income Limits: The income cap varies depending on your filing status and the number of qualifying children. For example, if you have no children, the maximum income limit is lower than if you have dependents.
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Investment Income: You cannot have more than $11,600 in investment income for the 2024 tax year.
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Qualifying Child Criteria: If you’re claiming the credit based on a dependent, the child must meet specific criteria related to age, residency, and relationship.
Special Rules for Military Members
There are some unique provisions in place to help military personnel maximize their EITC benefits. For instance, certain forms of military pay—such as combat pay—can be excluded from earned income calculations, allowing some service members to qualify for a larger credit. The IRS also provides flexibility when filing taxes from overseas or deployed locations.
How to Claim the EITC
To claim the EITC, you’ll need to file a tax return, even if you’re not otherwise required to do so. Make sure to complete and attach Schedule EIC if you have qualifying children. It’s recommended to check the IRS EITC Assistant tool, which can help you confirm eligibility based on your income and family situation.
Why It Matters
With inflation affecting many families and rising living costs, the EITC can provide much-needed financial relief. Veterans and military members should take advantage of this opportunity to ensure they’re not leaving money on the table. For those who qualify, the credit can mean thousands of dollars in their pockets during tax season.
Final Tip
If you think you qualify but aren’t sure how to proceed, consider consulting a tax professional or a Veterans Affairs representative. They can help you navigate the application process and ensure you claim every dollar you’re entitled to.
