This is what I found on USATODAY.COM:
Most Americans’ goals during tax season are to pay as little tax as possible, and ideally to get a refund that’s as large as you can get. Unfortunately, preparing taxes is complicated, and the complex laws governing taxation are so challenging to navigate that many taxpayers end up not claiming tax breaks that could put thousands of extra dollars in their pockets.
It might come as a surprise to learn that the IRS actually wants to encourage taxpayers to take tax breaks, but that’s exactly what it did on Jan. 31. With the 14th installment of its annual EITC Awareness Day, the tax agency wants to make sure everyone knows about the benefits of claiming the earned income tax credit – a tax break that it believes 6 million eligible taxpayers leave untouched.
The earned income tax credit helps workers with modest income levels save on their taxes. For the 2019 tax year, credit amounts can be up to $6,559 for taxpayer families with three or more children, and smaller limits of $5,828, $3,526 and $529 apply to those with families of two, one or no children, respectively. Below, you’ll see the income limits that apply to the credit for 2019, putting an upper bound on how much money you can make and still receive a portion of the credit amount.
The IRS estimates four of five eligible taxpayers claim and get the EITC.
“Best of all, EITC combined with the CTC/ACTC/ODC is a financial boost for working people and your local economy,” the organization said in a statement on awareness. ” EITC and the CTC greatly reduce poverty for working families. These working family credits lifted an estimated 9 million people out of poverty, including 5 million or more than half of them children.”
IRS Commission Chuck Rettig said the IRS outreach effort is intended to raise awareness as some Americans may not know they qualify for the credit.
“The EITC is a vital tax credit that helps millions of hardworking working families around the nation,” Rettig said. “It’s critical that people review the credit to see if they qualify. Increasing awareness about the EITC is important, and the IRS is proud to support the ongoing efforts by partner groups across the country for sharing this critical information with taxpayers.”
The EIC is a refundable credit, the report notes, meaning that even if you don’t owe taxes, you can still file for a refund to get the credit amount.
The IRS identified the following groups of taxpayers who should verify whether they qualify for the credit:
- Those without children.
- Those who live in nontraditional families, such as where grandparents are raising grandchildren
- Those who saw their filing status or income change.
- Those with limited English skills.
- Members of the Armed Forces.
- Those who live in rural areas.
- Native Americans.
- People with disabilities or who care for those who are disabled.
Friday, January 31st is Earned Income Tax Credit (EITC) Awareness Day! According to the IRS, “four out of five eligible taxpayers claim and get” this credit. Learn more about EITC here and help spread the word. https://t.co/XaDScZMIpb
— Dave Carlisle (@Dave_Carlisle_) February 5, 2020
Information provided by USATODAY.COM.
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