$7,340 Credit From the IRS? Many Louisiana Residents Qualify

For most Louisiana residents the month of January into early February is not filled with thoughts of taxes and refunds. We're too busy thinking about king cakes, parades, and Mardi Gras balls to be concerned with what we may or may not owe the Federal Government. But, if 7,430 dollars is a lot of money for you, maybe you should take a look at what we found out.

Based on our figures from the United States Census Bureau about half of Louisiana's individual tax filers and more than a third of Louisiana residents who file returns as married filing jointly. What makes this even more amazing is that, according to the Internal Revenue Service, about 20% of Louisiana's eligible residents don't file for the credit on their taxes. 

It's called the Earned Income Tax Credit and it's a tax break for low to moderate-income individuals and families not only in Louisiana but Texas and the other 48 states too. The EITC is even larger for families with children who meet the program's criteria.

Who in Louisiana and Texas Qualifies for Earned Income Tax Credit from the IRS?

To qualify for the EITC you'll have to file a tax return. Even if your income is below the filing threshold.If, as an individual you make less than $56,838 or less than $63,398 for married filing jointly this program could save you money or boost your refund.

You will also need to have a valid Social Security card and be a citizen of the United States not filing Form 2555 reporting foreign income. Not everyone who qualifies for the EITC will earn the maximum amount. According to the IRS, the credit breaks down this way. 

• No children with adjusted gross income of up to $17,640 for single filers or $24,210 for joint filers - $600 maximum credit.
• One child with AGI of up to $46,560 for single filers or $53,120 for joint filers - $3,995 credit
• Two children with AGI of up to $52,918 for single filers or $59,478 for joint filers - $6,604 credit
• Three or more children with AGI of up to $56,838 or $63,398 for joint files - $7,430 credit

For those who don't "speak IRS," the initials AGI stand for Adjusted Gross Income which is the amount of total income minus deductions or adjustments to income that the law allows you to take.

There is one caveat you should be aware of as you look into this program for yourself or your family, it could delay your income tax refund if you have one coming. The IRS says those who file for EITC will not receive refunds until at least February 27th. That is assuming you're filing with direct deposit into your account.

And since the average tax refund takes three weeks to process anyway and you'll be concerned with Mardi Gras for at least another two weeks, you could probably get your tax credit, if you qualify, in a more timely manner. If you'd like to know what the status of your refund is you can visit Where's My Refund. The IRS will be updating that site on 2/17/24 to include details for those who file for the Earned Income Tax Credit.