Let Earned Income Tax Credit Work for You
Jan 29, 2021
One of the most helpful and refundable tax credits for those with low or moderate incomes is the Earned Income Tax Credit (EITC). It’s the federal government’s largest program for helping working Americans. During 2020, 22 million eligible workers and families nationwide received about $57 billion in EITC. Here are five facts about the EITC all taxpayers should know.
1. Eligibility is limited to low-to-moderate income earners.
2. The amount of the EITC depends on
- the amount you earned.
- if you are married or single.
- the number of qualifying children you have, if any.
3. Four out of five eligible workers claim and receive their EITC. The federal government wants to raise that number to five out of five. If you earned it, why not claim it?
4. If you qualify for EITC, you must file a federal income tax return and claim the credit, even if you owe no tax or aren’t required to file a return.
5. You can determine your eligibility for free!
Use the online EITC Assistant on the IRS website to help you determine if you are eligible. Click here for more information.
The information herein is general/educational in nature & should not be considered financial or legal advice. Consult an attorney or finance professional regarding your specific situation.