Workers may get a larger tax refund this year because of the EITC or Earned Income Tax Credit. But to get it, you must file a tax return and claim it. January 26th is National EITC Awareness Day -- a nationwide effort to increase awareness about EITC and free tax preparation sites. This year, IRS is promoting EITC and providing information on other refundable tax credits that your constituents may be eligible for. This includes the American Opportunity Tax Credit, the Child Tax Credit and the Additional Child Tax Credit. Last year more than 500,000 Virginia workers received an average of $2,346 in EITC refunds.
If you worked last year and had income of less than $53,505, check out your eligibility for EITC. EITC can mean up to a $6,269 refund when you file a return if you have qualifying children. Workers without a qualifying child could be eligible for a smaller credit up to 506 dollars.
Why is it important to have an EITC Awareness Day each year? One-third of the EITC population changes each year. The IRS estimates that four out of five workers claim the EITC they earned. This leaves billions of dollars on the table each year. It is vitally important to get the word out to those who are eligible to file a tax return even if they don’t owe any tax to claim the EITC. It’s money workers can use for groceries, rent, utilities and other bills.
EITC is complex. It varies by income, family size and your filing status. To be eligible, you must have earned income or certain disability income. This means you must have income from working for someone or working for yourself.
Volunteers – trained by the Internal Revenue Service – ask you the needed questions to find out if you qualify for the EITC and other refundable tax credits. Volunteers at VITA, Volunteer Income Tax Assistance sites, also prepare and e-file (electronically file) your tax return at no cost to you.
For more information visit http://bit.ly/2n1Spm1