Earned Income Tax Credit (EITC) Awareness Day
Today, January 30, is EITC Awareness day. The EITC is a lucrative tax credit provided by the IRS for low to moderate-income taxpayers as an incentive for working. Workers who earned $52,427 or less last year may qualify for EITC!
Last year, almost 28 million eligible workers and families received $66 billion total in EITC, with an average EITC near $2,400.
According to IRS Commissioner John Koskinen, about 1 out 5 of the eligible workers and families who qualify for the credit doesn't get the refund they are entitled. Those 6 million or families are missing out on a potential average refund of $2,400 each.
The amount of EITC varies depending on income, family size and filing status. Those who work for someone else or those who run a business or farm and who earned $52,427 or less during 2014 could receive larger refunds if they qualify for the EITC. This could mean up to $496 in EITC for people without children, and a maximum credit of up to $6,143 for those with three or more qualifying children.
The EITC is refundable. This means those eligible may get a refund from the IRS even if they owe no tax or had no taxes withheld from their paycheck.
The rules for EITC are complicated. The IRS urges taxpayers to seek help from competent professionals when preparing your return and claiming EITC. Don't miss out on this lucrative tax credit. You can find a tax professional in your neighborhood to assist you at www.taxbuzz.com