HOLT, Fla., Jan. 30, 2022—Many families in rural America who qualify for the Earned Income Tax Credit don’t file for it mainly because they aren’t aware it exists.
This tax credit could lower taxes owed and even result in a refund.
The EITC is the federal government’s largest refundable federal income tax credit for low- to moderate-income workers and can make a big difference for families trying to make ends meet.
The amount of credit that can be claimed depends on income, children, dependents and disabled dependents.
When the earned income tax credit exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
Additionally, those who qualified the previous three years, but didn’t file for the tax credit can still get that money back.
Earned income credit, depending on filing status, ranges from $1,502 with zero children to $6,728 with three or more dependents for tax year 2021. Those who earned less are eligible for a larger earned income credit.
For early income tax filers, according to the Internal Revenue Service website, claiming EITC could delay refunds because by law, the IRS is required to wait until mid-February to issue refunds to taxpayers who claim the Earned Income Tax Credit.
To help speed up tax refunds, the IRS recommends filing electronically.
“Filing electronically and using online resources instead of calling are just some of the steps that can help people avoid delays,” said IRS Commissioner Chuck Rettig.
- Worked and earned income less than $57,414
- Investment income below $10,000 in 2021
- Social Security number
- U.S. citizen or resident alien all year
- Not file Form 2555 (foreign earned income)