The deadline for filing a 2024 federal tax return — or amending one already submitted — is April 15, 2026, and for millions of working families, that window represents the last chance to claim refundable credits that can run into the thousands of dollars. For Diego Becerra, that deadline arrived with an uncomfortable question: had he already let thousands of dollars slip away?
I first heard about Diego in early February 2026, through the manager of a credit union branch on Detroit’s west side. She had reached out after Diego came in asking about hardship withdrawal options on a small savings account — the kind of conversation, she told me, that usually signals a family quietly running out of runway. She suggested I speak with him. He agreed, a little reluctantly, on a Tuesday afternoon in a back office that smelled like fresh coffee and old carpet.
A Family Running Two Engines on Half a Tank
Diego Becerra is 46, trim, and moves with the deliberate energy of someone who has learned not to waste a step. He works overnight security at a logistics facility on the outskirts of Detroit, pulling in roughly $38,000 a year before taxes. His wife, Camila, works part-time as a dental receptionist — about $14,000 annually — while managing the household and their two kids, ages 5 and 10.
On the side, Diego runs a small handyman and moving-help operation he started in 2021. At its peak, it added around $12,000 to the family’s income. By 2024, that number had slid to just under $6,000 as larger moving apps crowded the local market and his regulars aged out of needing him. Total household income for 2024 came in at approximately $58,000.
“I always figured we made too much for any of that stuff,” Diego told me, leaning back in his chair. “You hear EITC and you think — that’s for people who are really struggling. We’re not rich, but I didn’t want to think of us as people who needed a handout.”
That assumption, as Diego would find out, had cost his family real money. For two consecutive tax years, he had filed a basic 1040 using off-the-shelf software, claimed the standard deduction, and walked away leaving significant credits unclaimed.
What He Actually Qualified For
After the credit union manager connected him with a volunteer income tax assistance (VITA) site at a nearby community college, a certified tax volunteer spent nearly two hours reviewing Diego’s 2024 return. What she found reshaped how Diego understood his own financial situation.
For tax year 2024, the maximum Earned Income Tax Credit for a married couple filing jointly with two qualifying children was $3,995. Diego’s household income placed him in a phase-out range, but he still qualified for a partial credit — the volunteer calculated it at approximately $2,900. On top of that, the Additional Child Tax Credit added roughly $1,900 for both kids combined.
The total came to just under $4,800 in credits Diego had not claimed on his original filing. He would need to file an amended return — a Form 1040-X — to recover it.
The Complication No One Warned Him About
The self-employment income from Diego’s handyman side work introduced a wrinkle that his original tax software had not handled cleanly. When you report Schedule C income, the IRS requires you to pay self-employment tax — roughly 15.3% on net earnings — but it also allows you to deduct half of that tax when calculating your adjusted gross income. That deduction affected which EITC bracket Diego fell into.
The volunteer also found that Diego had not deducted several legitimate business expenses from his handyman work: approximately $480 in equipment, $320 in mileage, and a $200 phone plan he used partly for client coordination. Those deductions reduced his Schedule C net income, which in turn lowered his AGI just enough to push his EITC credit slightly higher.
“I just typed in what I made and hit submit,” Diego said, describing his previous two filing seasons. “I didn’t know there was a whole other layer to it.”
The amended return for 2024 was submitted in late March 2026. As of the day we spoke, Diego was waiting on the refund — the IRS typically takes 8 to 16 weeks to process an amended return, though that timeline can stretch further during peak filing season.
The Health Insurance Problem He Still Hasn’t Solved
The amended return is the win in Diego’s story. The loss — and he talked about it openly — is health insurance. His security job does not offer employer-sponsored coverage. Camila’s part-time dental receptionist role carries no benefits either. The family of four has been uninsured since late 2023, when Diego dropped a short-term plan that cost $580 a month and, in his words, “covered almost nothing.”
The VITA volunteer told Diego his household income likely qualified for significant Affordable Care Act marketplace subsidies — possibly bringing a benchmark silver plan down to under $200 a month for the family after the premium tax credit. But the 2026 open enrollment period had closed in January. Unless a qualifying life event triggers a Special Enrollment Period, the family cannot enroll until November 2026 for coverage starting January 2027.
“That part stings,” Diego told me. “The tax thing — okay, I fixed it, better late than never. But my kids don’t have health insurance and I can’t do anything about it until November. That’s eight more months.”
He paused, then added: “My youngest needs his kindergarten physical. I’ve been putting it off because I don’t know what it’s going to cost out of pocket.”
What Diego Is Doing Differently Going Forward
Diego is not the type to sit still after a setback. By the time I met him, he had already bookmarked the VITA site locator on the IRS website for next filing season and written a note on his phone reminding him when ACA open enrollment begins — November 1, 2026.
He’s also reconsidering the handyman side business. Not abandoning it — he’s too restless for that — but potentially formalizing it as an LLC, which a small business advisor at the credit union told him could help with liability exposure and create cleaner records for future tax filings.
“I’m not going to quit hustling,” he said. “That’s not me. But I want to hustle smarter. I’ve been leaving money on the table and I didn’t even know the table was there.”
What Diego’s Story Reveals About the Middle Gap
Diego’s situation is not unusual in Detroit or across the country. Families in the roughly $45,000 to $65,000 household income range often find themselves too financially visible to receive automatic outreach for assistance programs, yet too financially stretched to absorb unexpected costs without consequences. The EITC, in particular, has long been underutilized among this group — partly due to the complexity introduced by self-employment income, and partly due to the perception that the credit is only for very low earners.
The IRS estimates that roughly 1 in 5 eligible taxpayers does not claim the Earned Income Tax Credit each year. For many of those filers, the issue is not disqualification — it’s information. Diego was one of them for two consecutive tax years before a credit union manager, acting on a hunch, suggested he talk to someone who knew more than a software wizard did.
When I left the credit union that afternoon, Diego was on his phone checking the mileage tracking app the tax volunteer had recommended. He had a 4 p.m. security shift and a moving job lined up for Saturday morning. The amended return was in the mail. The health insurance problem was still eight months away from a solution.
Some stories resolve cleanly. Diego’s is still in progress — which, in its own way, makes it more honest than most.
Vivienne Marlowe Reyes is a Senior Tax & Stimulus Writer at American Relief. This article reflects information available as of April 2, 2026, and is intended as reported journalism, not financial or legal advice. Readers with questions about tax credit eligibility should contact a qualified tax professional or a local VITA site.
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