January 26th is EITC Awareness Day! EITC stands for Earned Income Tax Credit, and many Americans do not take advantage of these credits each year at tax time.
To help you get the most out of your return this year, here is all you need to know about EITC to see if you qualify for credit.
What is EITC?
EITC, as stated above, stands for earned income tax credit. This refundable tax credit is designed to aid workers whether they are filing as single or as a family. According to the IRS, in 2015, 27 million individuals and families received roughly $67 billion in refunds due to EITC eligibility.
Do I Qualify?
Keep in mind that, in order to receive EITC, there are several distinct rules that must be met. They include:
- EITC receivers must have a social security number. Additionally, all qualifying children must also have a social security number.
- Eligibility is based on the income of the person filing, but the income requirements change if that person has one or more children or if he or she is filing a joint return.
- The individual filing must be over 25 years old in order to receive EITC if he or she does not have children.
How to Claim
In order to claim EITC should you qualify, you must fill out a tax return and specifically claim the EITC credit on that return. If you receive tax assistance from an individual or online service, it’s important to be thorough and precise to avoid any errors or delay in receiving your return.
Here, the IRS lists documents required in order to claim EITC.
For more tips on getting the most out of your 2017 tax return, visit our blog.