FAQs
Can I claim my own children on my tax return even if I've worked a non-traditional job?
To be a qualifying child for any of the child related tax benefits:
- Dependency Exemption
- Child Tax Credit (CTC), and the refundable part of the CTC, the Additional Child Tax Credit (ACTC)
- Earned Income Tax Credit (EITC)
- Credit for Other Dependents (ODC)
- Child and Dependent Care Credit (CDCC)
- Head of Household (HOH) Filing Status
The child must meet the basic tests under the Uniform Definition of a Qualifying Child, and then each credit has additional rules the child and the person claiming the child must meet.
Uniform Definition of a Qualifying Child
In general, to be your client’s qualifying child, a person must satisfy these tests:
- Relationship
- Residency
- Age
- Support
- Joint Return
- Client’s son, daughter, stepson, stepdaughter, adopted child, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister or a descendent of any of them
- Same principal residence as your client for more than half the tax year
- Under age 19 at the end of the year
- Under age 24 if a full-time student for at least five months of the year
- Permanently and totally disabled during the year
- Did not provide more than one-half of own support
- Did not file a joint return (other than only to claim a refund of withheld taxes) with the child’s spouse
The law also defined exceptions and special rules for dependents with a disability, divorced parents, adopted children and missing or kidnapped children. The exceptions and special rules for dependents with a disability and divorced parents are different for each of the child-related benefits; see the Child-related Tax Benefits Comparison chart for more information.
See the child’s social security number (SSN) and taxpayers identification number(TIN) requirements along with all the child-related tax benefits at a glance on our Child-Related Tax Benefits Comparison chart.
Adopted Child: An adopted child is always treated as your own child and includes a child lawfully placed with you for legal adoption.
Missing or Kidnapped Children: You may be able to claim a child who was kidnapped by a non-family member. IRS treats a kidnapped child as living with you for more than half of the year if the child lived with you for more than half the part of the year before the date of the kidnapping.
What is Earned Income Credit?
The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient’s income and number of children. EITC for tax year 2023 is listed below.
Maximum Credit Amounts:
- No qualifying children: $600
- 1 qualifying child: $3,995
- 2 qualifying children: $6,604
- 3 or more qualifying children: $7,430
Apply for an Extension of Time to File
If you need more time to prepare your tax return, apply for an extension of time to file. This does not grant you an extension of time to pay. A payment plan can help you pay over time.
Taxpayers who don’t meet their tax obligations may owe a penalty.
The IRS charges a penalty for various reasons, including if you don’t:
- File your tax return on time
- Pay any tax you owe on time and in the right way
- Prepare an accurate return
- Provide accurate and timely filed information returns
We may charge interest on a penalty if you don’t pay it in full. We charge some penalties every month until you pay the full amount you owe. Understand the different types of penalties, what you need to do if you get a penalty and how to avoid getting one.
How You Know You Owe a Penalty
When we charge you a penalty, we send you a notice or letter by mail. The notice or letter will tell you about the penalty, the reason for the charge and what to do next. These notices and letters include an identification number. Verify the information in your notice or letter is correct. If you can resolve the issue in your notice or letter, a penalty may not apply.
For more information, see Understanding Your Notice or Letter.
Types of Penalties
These are some penalties we send notices and letters:
- Information Return applies to taxpayers who don’t file or furnish their required information return or payee statement correctly by the due date.
- Failure to File applies when you don’t file your tax return by the due date.
- Failure to Pay applies when you don’t pay the tax you owe by the due date.
- Accuracy-Related applies when you don’t claim all your income or when you claim deductions or credits for which you don’t qualify.
- Erroneous Claim for Refund or Credit Penalty applies when you submit a claim for refund or credit of income tax for an excessive amount and reasonable cause does not apply.
- Failure to Deposit applies when you don’t pay employment taxes accurately or on time.
- Tax Preparer Penalties apply to tax return preparers who engage in misconduct.
- Dishonored Checks or Other Form of Payment applies when your bank doesn’t honor your check or other form of payment.
- Underpayment of Estimated Tax by Corporations applies when you don’t pay estimated tax accurately or on time for a corporation.
- Underpayment of Estimated Tax by Individuals applies when you don’t pay estimated tax accurately or on time as an individual.
- International Information Reporting applies to certain taxpayers who fail to timely and correctly report foreign sourced financial activity.
Interest on a Penalty
We charge interest on penalties. The date from which we begin to charge interest varies by the type of penalty. Interest increases the amount you owe until you pay your balance in full. For more information about the interest we charge on penalties, see Interest.
Pay a Penalty
Send us a payment or pay your taxes in full to stop future penalties and interest from adding up.
Remove or Reduce a Penalty
We may be able to remove or reduce some penalties if you acted in good faith and can show reasonable cause for why you weren’t able to meet your tax obligations. By law we cannot remove or reduce interest unless the penalty is removed or reduced. For more information, see penalty relief.
Dispute a Penalty
If you disagree with the amount you owe, you may dispute the penalty.
Call us at the toll-free number at the top right corner of your notice or letter or write us a letter stating why we should reconsider the penalty. Sign and send your letter along with any supporting documents to the address on your notice.
Have this information when you call or send your letter:
- The notice or letter we sent you
- The penalty you want us to reconsider (for example, a 2021 late filing penalty)
- For each penalty, an explanation of why you think we should remove it
If a notice or letter we sent you has instructions or deadlines for disputing the penalty, pay careful attention. You must follow the instructions to dispute the penalty. If you didn’t receive a notice or letter, get telephone assistance.
Avoid a Penalty
You can avoid a penalty by filing accurate returns, paying your tax by the due date, and furnishing any information returns timely. If you can’t do so, you can apply for an extension of time to file or a payment plan.
Where's My Refund?
One of IRS’s most popular online features-gives you information about your federal income tax refund. The tool tracks your refund’s progress through 3 stages:
– Return Received
– Refund Approved
– Refund Sent
You get personalized refund information based on the processing of your tax return. The tool provides the refund date as soon as the IRS processes your tax return and approves your refund.
It’s Fast! – You can start checking on the status of your return sooner – within 36 hours after you file your e-filed return or 4 weeks after a mailed paper return.
It’s Up-to Date! – It’s updated every 24 hours – usually overnight – so you only need to check once a day. There’s no need to call IRS unless Where’s My Refund? tells you to do so.
It’s Easy! – Have your tax return handy so you can provide your social security number, filing status and the exact whole dollar amount of your refund.
It’s Available! – It’s available 24 hours a day, 7 days a week.
Find it! – Download the IRS2Go App by visiting the Apple Store or visit Google Play or Where’s My Refund? on IRS.gov.
If you do not have internet access, call the IRS’s Refund Hotline at 1-800-829-1954.
Caution: Don’t count on getting your refund by a certain date to make major purchases or pay other financial obligations. Even though the IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days, it’s possible your tax return may require more review and take longer.
New for 2024
Starting in calendar year 2023, the Inflation Reduction Act reinstates the Hazardous Substance Superfund financing rate for crude oil received at U.S. refineries, and petroleum products that entered into the United States for consumption, use, or warehousing. The tax rate is the sum of the Hazardous Substance Superfund rate and the Oil Spill Liability Trust Fund financing rate. For calendar years beginning in 2024, the Hazardous Substance Superfund financing rate is adjusted for inflation. For calendar year 2024 crude oil or petroleum products entered after Dec. 31, 2016, will have a tax rate of $0.26 cents a barrel.
Highlights of changes in Revenue Procedure 2023-34:
The IRS announced tax changes for 2024, potentially lowering some Americans into a lower tax bracket.
Key adjustments include increased federal income tax brackets and standard deductions. The changes aim to address inflation’s impact on wages.
Understanding the new brackets is crucial for paycheck implications. For instance, even with increased income, you may drop into a lower tax bracket.
The standard deduction has also been raised for 2024. Other changes include a 3.2% Social Security cost-of-living adjustment and enhancements to tax credits and deductions.
The tax year 2024 adjustments described below generally apply to income tax returns filed in 2025.
The tax items for tax year 2024 of greatest interest to most taxpayers include the following dollar amounts:
The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Marginal rates:
For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
The other rates are:
35% for incomes over $243,725 ($487,450 for married couples filing jointly)
32% for incomes over $191,950 ($383,900 for married couples filing jointly)
24% for incomes over $100,525 ($201,050 for married couples filing jointly)
22% for incomes over $47,150 ($94,300 for married couples filing jointly)
12% for incomes over $11,600 ($23,200 for married couples filing jointly)
The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
The Alternative Minimum Tax exemption amount for tax year 2024 is $85,700 and begins to phase out at $609,350 ($133,300 for married couples filing jointly for whom the exemption begins to phase out at $1,218,700). For comparison, the 2023 exemption amount was $81,300 and began to phase out at $578,150 ($126,500 for married couples filing jointly for whom the exemption began to phase out at $1,156,300).
The tax year 2024 maximum Earned Income Tax Credit amount is $7,830 for qualifying taxpayers who have three or more qualifying children, an increase of from $7,430 for tax year 2023. The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.
For tax year 2024, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $315, an increase of $15 from the limit for 2023.
For the taxable years beginning in 2024, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $3,200. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $640, an increase of $30 from taxable years beginning in 2023.
For tax year 2024, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,800, an increase of $150 from tax year 2023, but not more than $4,150, an increase of $200 from tax year 2023. For self-only coverage, the maximum out-of-pocket expense amount is $5,550, an increase of $250 from 2023. For tax year 2024, for family coverage, the annual deductible is not less than $5,550, an increase of $200 from tax year 2023; however, the deductible cannot be more than $8,350, an increase of $450 versus the limit for tax year 2023. For family coverage, the out-of-pocket expense limit is $10,200 for tax year 2024, an increase of $550 from tax year 2023.
For tax year 2024, the foreign earned income exclusion is $126,500, increased from $120,000 for tax year 2023.
Estates of decedents who die during 2024 have a basic exclusion amount of $13,610,000, increased from $12,920,000 for estates of decedents who died in 2023.
The annual exclusion for gifts increases to $18,000 for calendar year 2024, increased from $17,000 for calendar year 2023.
The maximum credit allowed for adoptions for tax year 2024 is the amount of qualified adoption expenses up to $16,810, increased from $15,950 for 2023.
How do I get my refund?
Are you counting down the days to the moment you collect your tax refund? We offer loan amounts of $6,000, $4,500, $3,000, $2,000, $1,500, $1,000 or $500 based on your net refund. In some cases, we can issue money to approved customers at the beginning of January before the IRS even opens.
I will owe the IRS, how do I pay or set up a payment arrangement with the Internal Revenue Service?
If you can’t pay the full amount of your taxes or penalty on time, pay what you can now and apply for a payment plan. You may reduce future penalties when you set up a payment plan.