Who Qualifies for the Earned Income Tax Credit?

If you’re 65 years old or older and your earnings are low- to moderate. You can qualify for the EITC—a credit score that might lessen the taxes you owe and assist you with the price of regular expenses.

And the maximum essential news? You can qualify for the EITC in case you make up to $27,380 without youngsters in your house or $57,414 in case you’re being concerned about children.

What is the Earned Income Tax Credit?

Enacted in 1975, the Earned Income Tax Credit (EITC) become created to function as an antipoverty program, assisting tens of thousands and thousands of American households every 12 months. More human beings than ever earlier than will qualify for good-sized new tax advantages in this 12 months way to adjustments withinside the American Rescue Plan (ARP), inclusive of the ETIC. The most credit score has almost tripled for taxpayers and is, for the primary time, to be had to each more youthful people and older adults.

The problem? The Earned Income Tax Credit is an actual advantage that now no longer sufficient human beings recognize. At least 20% of eligible people don’t declare this advantage every 12 months, probably due to the fact they may be unaware they qualify. Now with the federal expansion, this wide variety should cross up and lots of them may be in danger of lacking out.

How do I recognize if I qualify for the Earned Income Tax Credit?

Before you discover case you qualify, it is essential to observe that this tax destroy isn’t always a loan, and social protection advantages and pensions do not matter as earnings for this tax credit score.

To qualify for the Earned Income Tax Credit or EITC, you must:

Have labored and earned earnings under $57,414
Have funding earnings below $10,000 withinside the tax 12 months of 2021
A legitimate Social Security wide variety via way of means of the due date of your 2021 go-back (inclusive of extensions)

How can I get help submitting my tax go back?

There are some unfastened primary tax go-back preparation offerings that you can qualify for, inclusive of the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

Now, for greater than 50 years, VITA websites provide unfastened tax assistance to those who want help in making ready their personal tax returns, inclusive of:

People who typically make $58,000 or less
Persons with disabilities; and
Limited English-talking taxpayers
You can discover a VITA web page to your community, regularly at community centers, libraries, schools, and buying malls, among different handy locations. Use the VITA Locator Tool or name 800-906-9887 to locate the closest site close to you.

Will my tax refund be not on time if I declare the Earned Income Tax Credit?

Yes. According to the IRS, in case you declare the EITC, your tax refund maybe not on time. Unfortunately, via way of means of law, the IRS cannot trouble EITC refunds earlier than mid-February. You can report your tax go back now and the IRS expects you to look for maximum EITC-associated refunds inside your financial institution account or on debit playing cards via way of means of March

To make sure you could get your refund via way of means of March 1, you could:
File your go back online
Choose the choice of having your refund via way of means of direct deposit
Make certain the IRS does not locate any problems together with your tax going back
The IRS has approaches you could keep away from not unusual place mistakes while submitting your tax go back. And in case you’re trying to tune the popularity of your go-back, the quality manner to try this is thru the IRS’ Where’s My Refund? or the IRS2Go cell app.