01/31/2024
Been seeing a lot of posts about taxes and refunds lately so I put together this little cheat-cheat:
https://www.irs.gov/instructions/i1040tt
Minimum tax withholding amount is 10% if earning up to $15,700 for heads of household or $11,000 for single. Next bracket is 12% if earning up to $59,850 for heads of household and $44,725 for individuals. After that, it jumps by another 10% to 22%, and goes up from there.
EIC starts out the same for everyone. It levels out at a certain income differently depending on filing status and number of dependents, before decreasing and dropping all the way back down to $2 at a certain income based on filing statuses and number of dependents. The minimum for earners under $50 being $2 for filers with no dependents, and $11 for filers with 3 dependents. Single, HOH, and qualifying widowers progress the same, and married filing jointly progresses a little differently.
The following progressions are for single, HOH, and qualifying widowers only:
0 Dependents - Levels out at $600 if making between $7,850 - $9,800, then starts to decrease to $2 once $17,600 income is reached.
1 dependent - Levels out at $3,995 if making between $11,750 - $21,600, then starts to decrease to $2 once $46,500 income is reached.
2 dependents - Levels out at $6,604 if making between $16,500 - $21,600, then starts to decrease to $2 once $52,900 income is reached.
3 dependents - Levels out at $7,430 if making between $16,500 - $21,600, then starts to decrease to $2 once $56,800 income is reached.
0 dependents = $7,850 to get the maximum credit of $600
1 dependent = $11,750 to get the maximum credit of $3,995
2 dependents = $16,500 to get the maximum credit of $6,604
3 dependents = $16,500 to get the maximum credit of $7,430
While it seems you only have to work up to certain levels to get the maximum EICs, as you will see on the tax tables, those maximums stay that way up to $21,600 and you can still get some of it even after making more than that.
While big refunds are nice once a year, I caution people on limiting your earning potential for this because you need money throughout the year more than you do that one time a year. Furthermore, it helps improve the income and keep people working. So for 2024, strive to keep earning income and just make sure the right % of taxes are being deducted from your paycheck as seen in the tax tables on the IRS website link I’ve provided, and be sure to regularly check your paystubs (especially your final one for the year), and you’ll be just fine.
Here’s to a prosperous 2024 for all!! 💴
1040 TAX AND EARNED INCOME CREDIT TABLES - Introductory Material 1040 TAX AND EARNED INCOME CREDIT TABLES - Main Contents Tax Table EIC Table 1040 TAX AND EARNED INCOME CREDIT TABLES (2023) 2023 Note. THIS BOOKLET DOES NOT CONTAIN TAX FORMS 1040 TAX AND EARNED INCOME CREDIT TABLES - Introductory Mat...
