if you haven't filed your taxes yet, there is a tax benefit for middle-to-low income families that would give taxpayers a refund even if they owe no tax.
The Earned Income Tax Credit is the largest refundable federal income tax credit.
The IRS estimates four out of five eligible taxpayers who claim the credit actually get it. in 2019, 25 million taxpayers received more than $61B through the credit. The average amount received was about $2,500. To claim it you must earn just under $56,000 or less annually and have no children. Non-traditional families like grandparents raising a grandchild can claim this credit too. Members of the armed forces can claim it and workers with disabilities or who care for a disabled dependent can claim it.
The deadline to file is April 15. By law, the IRS cannot issue refunds before mid-February for tax returns that claim the credit.
To see if you qualify visit IRS.gov/eitc.
To claim the EITC you can:
- Free File on IRS.gov.
- Free tax preparation sites. EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, use the search tool on IRS.gov, the IRS2Go smartphone application, or call toll-free 800-906-9887. They should be sure to bring along all required documents and information.
- Find a trusted tax professional. The IRS also reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov. EITC recipients should be careful not to be duped by an unscrupulous return preparer.
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