Right-A-Way Taxes Inc

We’re about to embark on a new tax season 💚
So let’s get our returns filed quickly and sufficient as possible by having all our proper documents 👨🏾‍💻

Key Updates for 2026 EITC

Increased Maximum Credit: The maximum EITC amount has risen across all categories. The highest possible credit is $8,231 for taxpayers with three or more qualifying children.

Higher Income Thresholds: The income phase-in and phase-out ranges have been adjusted upward, meaning more low-to-moderate-income workers can qualify for the credit.

Investment Income Limit: To be eligible, your investment income in 2026 must not exceed $12,200.
Refund Timing: By law, the IRS must wait until mid-February to issue refunds for returns claiming the EITC to help prevent fraud. This applies to the entire refund amount.

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Child Tax Credit (CTC)

The maximum credit increases from $2,000 to $2,200 per qualifying child for the 2025 tax year, and up to $1,700 is refundable. A valid Social Security number is required for the child to claim the credit.

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Standard Deduction: The amounts have increased for the 2025 tax year due to inflation adjustments and an additional boost from the new legislation.

Single filers: $15,750

Married Filing Jointly: $31,500

Heads of Household: $23,625 👨🏾‍💻💚

The IRS will begin accepting all individual tax returns on January 27th 👨🏾‍💻💚

What are things you can itemize on your taxes?

If you itemize, you can deduct these expenses:

Bad debts.

Canceled debt on home.

Capital losses.

Donations to charity.

Gains from sale of your home.

Gambling losses.

Home mortgage interest.

Income, sales, real estate and personal property taxes.

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Is it better to claim 1 or 0 on your taxes?

Claiming 0 Allowances on your W4 ensures the maximum amount of taxes are withheld from each paycheck. Plus, you'll most likely get a refund back at tax time.

Claiming 1 reduces the amount of taxes that are withheld from weekly paychecks, so you get more money now with a smaller refund 👨🏾‍💻💚

Will tax returns be bigger in 2024?

All things being equal, it might. Your tax refund may be bigger this year due to inflation-related changes to the standard deductions and tax brackets for 2024. These adjustments could translate to a bigger tax refund compared to 2023 if your income, withholding, filing status and tax credits stay the same 👨🏾‍💻💚

In 2024 (taxes filed in 2025), the maximum earned income credit amounts are $632, $4,213, $6,960 and $7,830, depending on your filing status and the number of children you have. Below are the maximum amounts you can earn in 2024 to qualify for the credit, plus the most you can earn before losing the benefit
altogether 👨🏾‍💻💚

The standard deduction for 2024 (tax returns filed in 2025) is $14,600 for single filers and married people filing separately, $21,900 for heads of household, and $29,200 for joint filers and surviving spouses 👨🏾‍💻💚

Child tax credit 2025

For 2025, the maximum credit limit remains $2,000, with a maximum refundable portion of $1,700. The child tax credit income thresholds will also remain the same at $400,000 for those married filing jointly and $200,000 for all other filers 👨🏾‍💻💚