What is the Earned Income Tax Credit?
I didn’t earn enough income that I would have to file, how do I get the Earned Income Tax Credit?
Many of the potentially eligible workers don’t know about the tax credit. Some are not required to file tax returns, but they can’t take advantage of the EITC unless they file. In addition to the current year, if you were eligible for the three previous years, you can submit amended returns for those years.
Why don’t people claim the Earned Income Tax Credit?
Some do not know about it. Others who were never eligible may now be eligible due to change in job, unemployment, or family status. Others think that you have to have children to receive an EITC credit. In fact, very-low income individuals without children are eligible for a refund up to $399. Often enough, people such as grandparents are now taking care of their grandchildren in their home and until now they were never eligible but just don’t know about it. If all other eligibility conditions are met, they too can claim the EITC tax credit.
How much of a refund credit can be received for the Earned Income Tax Credit?
A qualifying, married couple with two or more qualifying children can have a credit up to $4,400, with one child, up to $2,662, and if you have no children, you could qualify up to $399.
With all of this talk about the Earned Income Tax Credit and large refunds for those with children, is this the same as the Child Tax Credit?
No. You may be eligible for up to $1,000 per child in addition to the EITC if you qualify for the Child Tax Credit.
If I am eligible, how can I quickly receive my refund?
When your taxes are prepared, you can file them electronically and have any refund that you may be eligible for sent directly to your bank account by the IRS. (Normally within ten days.)
What is a Refund Anticipation Loan?
It is a high-cost, high-risk loan. Did you know that businesses that prepare taxes and offer “quick refunds” are just giving you a loan? If the IRS should delay your refund, that loan can become immediately due. You may have already spent the money and owe the company who gave you the loan. Don’t pay to borrow your own money!
Can Immigrant Workers get the EITC?
Yes. In order to claim the EITC immigrant workers, their spouses, and children must each have a valid Social Security numbers and meet all other eligibility criteria.
Frequently Asked Questions