The Earned Income Tax Credit is one of the greatest tax credits available each year, yet it is sometimes neglected during tax season.
The benefit is designed to assist low- to moderate-income families financially and provide for higher tax returns as the number of family members increases.
According to the IRS, one in five eligible taxpayers does not claim the credit, resulting in losing money each year. The EITC is only accessible to taxpayers who submit their taxes every year.
However, the IRS claimed that the EITC is now worth up to $6,728 for families with three or more children — or up to $1,502 for taxpayers without a qualifying kid.
Your precise amount is determined by whether or not you owe taxes. You will get the difference if the EITC you are entitled to exceed your tax liability.
To be eligible for the EITC on your 2021 tax return, you must have worked and earned income totaling less than $51,464. This figure climbs to $57,414 if married and filing jointly.
Additionally, your investment must have been less than $10,000 in 2021, and you must not have filed a foreign earned income statement. By the due date of your 2021 tax return, you must have a valid Social Security number and have been a United States citizen or resident alien for the full of 2021.
The credit is available solely by filing a tax return, which means that even if you do not earn enough money to file a tax return regularly but feel you match all of the qualifying conditions, you must still file for 2021 to receive the money in your refund.