Tax season is here. You can already claim the EITC that grants up to $ 6,000 per family

The tax-filing season started is already here and, though filing your taxes is never a fun moment, there are ways to minimize what you pay and help improve your financial health. If you are eligible, don’t forget to claim the Earned Income Tax Credit that grants up to $ 6,000 per family when you file your return.

This year's tax season was delayed till February 12 and that was the first day to file your tax return for 2020. As the date approached, the IRS  gave advice and reminded taxpayers of ways in which they can save money when they file their taxes. Are you eligible to claim the EITC?

The Earned Income Tax Credit is the federal government's largest refundable federal income tax credit for low- to moderate-income workers. Those who qualify, if the credit is larger than the amount of tax they owe, will receive a refund for the difference. While the majority of those eligible claim EITC every year, IRS estimates that one of five eligible taxpayers does not claim the credit.

 

You may claim the EITC if your income is low- to moderate. The amount of your credit may change if you have children, dependents, are disabled, or meet other criteria.

Taxpayers earning $56,844 or less can see if they qualify using the EITC Assistant tool at IRS.gov/eitc. The EITC Assistant, available in English and Spanish, helps users determine if they are eligible, have a qualifying child or children, and estimates the amount of the EITC they may get and if an individual doesn't qualify for the EITC, the Assistant explains why.

According to the IRS website, workers at risk for overlooking this important credit can include taxpayers:

•Without children
•Living in non-traditional families, such as a grandparent raising a grandchild
•Whose earnings declined or whose marital or parental status changed
•With limited English language skills
•Who are members of the armed forces
•Living in rural areas
•Who are Native Americans
•With disabilities or who provide care for a disabled dependent

To get the EITC, workers must file a tax return and claim the credit. Eligible taxpayers are urged to claim the credit even if their earnings were below the income requirement to file a tax return. Free tax preparation help is available online and through volunteer organizations.

 

Related Articles

More News

More News