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Stimulus payments worth $5,980 will be paid soon, who qualifies?

Stimulus payments worth up to $5,980 will be paid in coming months.

Many Americans will be eligible.

This payment is part of the IRS’ Earned Income Tax Credit. This tax break is designed to help low and moderate income workers with families.

Related: Between $1,502 and $5,980 in stimulus payments to go out in 2022, here’s how to qualify

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Those who qualify can use the amount they receive in credit to reduce their tax bill and possibly get a refund.

A couple with two children may be eligible to receive a credit of up to 40% of their earnings. This maxes out at $5,980.

The benefits are mainly geared toward families that have children, but low income workers without children are entitled to a $1,502 EITC. This is up from $543 thanks to the American Rescue Plan Act.

Related: Child tax credit payments have ended, but stimulus checks will continue being sent into 2022

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If you don’t owe anything in taxes, you’ll get the total of the credit as a refund.

How to qualify for the Earned Income Tax Credit

Anyone with low to moderate income can qualify for the credit.

The amount can change depending on various factors like disabled dependents, children, or changes in marriage.

Income statements like W-2s and 1099s are necessary to show taxes withheld when applying for this credit.

There are special EITC rules for military members or clergy due to the other government benefits they receive.

Related: Saver’s credit could give you a $2,000 free tax break in 2022



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