The IRS is offering eligible taxpayers a major financial boost in the form of the Earned Income Tax Credit (EITC), which ranges from $632 to $7,830 for the 2024 tax year. This credit is designed to assist low- to moderate-income workers by reducing tax liabilities and increasing refunds. But what many don’t realize is that veterans and active-duty military members may also qualify for this benefit—and in some cases, they might even be eligible for more than civilians. So, if you’ve served in the military, whether on active duty or as a veteran, it’s essential to check if you qualify. You could be entitled to a significant refund that you might otherwise miss out on.
Who Qualifies for EITC?
The EITC is available to workers with low to moderate incomes, but the exact amount you can receive depends on a few factors:
- Your earned income from wages, self-employment, or other work-related pay.
- Your adjusted gross income (AGI), must fall within specific limits set by the IRS.
- The number of qualifying children you claim—more children typically mean a larger credit.
- You must have a valid Social Security number for yourself, your spouse (if filing jointly), and any qualifying children.
- You must be a U.S. citizen or a resident alien for the entire tax year.
- Your investment income must be $11,600 or less for the 2024 tax year.
Military members and veterans can qualify under these standard rules, but there are some unique benefits that service members should know about.
Special EITC Rules for Military Members
The IRS offers special considerations for military personnel that can help maximize their tax credit:
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Nontaxable Combat Pay Option – If you received combat pay that was excluded from taxation, you have the option to include it as earned income when calculating your EITC. This can often increase the amount of credit you qualify for, so it’s worth running the numbers both ways.
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Residency Requirements Loosened – Normally, the IRS requires you to live in the U.S. for more than half the year to qualify for the EITC. However, if you are on active duty stationed overseas, the IRS still considers you as meeting the residency requirement—meaning you won’t be disqualified just because of your service.
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Tax Assistance for Military Members – The Department of Defense (DoD) offers a free tax filing service called MilTax, which is designed specifically for active-duty members, veterans, and their families. Additionally, many military installations offer free tax assistance through the Volunteer Income Tax Assistance (VITA) program.
How Much Could You Receive?
The amount of the EITC depends on your income and the number of qualifying children you claim:
- No children: Up to $632
- One child: Up to $4,213
- Two children: Up to $6,960
- Three or more children: Up to $7,830
For married couples filing jointly, the income limits are higher than for single filers.
How to Claim Your Credit
If you think you qualify, don’t wait until the last minute to file your taxes. The EITC is not automatic—you must file a tax return, even if you don’t owe any taxes. The IRS offers free filing options through IRS Free File, and military members can use MilTax or VITA services for assistance. To ensure you get the maximum credit possible, check if you should include your combat pay, and make sure you meet all eligibility requirements before filing.
Don’t Leave Free Money on the Table!
Every year, millions of Americans miss out on claiming the EITC simply because they don’t know they qualify. Given the special rules in place, veterans and military members may especially benefit from this credit. With up to $7,830 available, it’s worth double-checking your eligibility. If you’ve served in the military and earned income in 2023, take advantage of this benefit before filing your taxes. It could mean a bigger refund check in your pocket this tax season!