Americans are preparing to send their returns into the IRS, and some may qualify for the Earned Income Tax Credit this year who could not before.
The change was made under the American Rescue Act. It works to help more families who may have struggled with the pandemic.
Many are eligible even if they don’t need to file their taxes, but they’ll need to file this year to get the credit.
This move allows people that are eligible to eliminate any debt they may owe as well, and it can go toward their tax bill.
IRS: IRS CP80 Notice explained
If the Earned Income Tax Credit ends up being worth more than what you owe in taxes, you’ll get it in a refund.
If you do not owe taxes, you’ll see the whole amount in a refund.
Who can get the EITC?
- You must make below $57,414
- If you have investment income it must have been under $10,000 in 2021
- You need a SSN
- Must be a U.S. citizen or resident alien during 2021
- You cannot file a Form 2555
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