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