The Earned Income Tax Credit (EITC), the government’s largest refundable credit for low- to moderate-income families, is now available to more persons who do not have children. Furthermore, if it results in a larger credit, households can use pre-pandemic income levels to qualify. Today, the IRS and partners across the country celebrate the 16th annual EITC Awareness Day by highlighting such developments.
What is EITC?
EITC, which was established in 1975, is recognized as one of the government’s greatest anti-poverty initiatives, assisting millions of American families each year.
The IRS and its partners across the country are urging people to check to see if they qualify for this important credit, as well as people who do not normally file a tax return to see if they qualify for EITC and other valuable credits such as the Child Tax Credit or the Recovery Rebate Credit, also known as stimulus payments.
IRS Commissioner Chuck Rettig stated that there are significant adjustments to the EITC that will help this credit reach more hardworking people this year.
He added that anyone who may be qualified for this valuable credit to carefully read the requirements; every year, many people neglect this and lose money. On this EITC Awareness Day, he said that they want to make sure that everyone who qualifies for the credit is aware of it and has the necessary information to obtain it.
How to claim EITC?
Individuals must file a tax return and collect the EITC in order to receive the benefit. Qualified taxpayers should claim the credit even if their income were less than the threshold for filing a tax return. Tax preparation assistance is offered for free online and through volunteer organizations.
The IRS encourages taxpayers to ensure that they have valid Social Security numbers for themselves, their spouse if filing jointly, and each qualifying kid claimed for the EITC. SSNs must be issued before the return’s due date, including extensions. There are additional requirements for people in the military or those who are traveling outside of the country, according to the IRS.