Low income earners will have a chance to claim a tax credit worth $1,500 on their tax refund this year through the IRS.
Millions of Americans will qualify for the benefit.
The is called the Federal Earned Income Tax Credit and will be given to those with the lowest income.
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Why is this new with your tax refund this year?
Normally those without children will not qualify for this specific tax credit, but this year they can.
This means for 2021 if you are childless and a low income worker, you may claim $1,500 with the credit.
The value of the credit tripled thanks to the American Rescue Plan.
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Qualify to claim on your refund
- You must be 19 or older
- Cannot be a full time student
- Must have earnings
- If 18 you must have no home or have been in foster care
Before this, only workers who were ages 25 to 64 qualified.
Your income must be up to $21,430 from working for wages in order to qualify when filing your 2021 taxes.
Before this year the limit was up to $16,000 annually.
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Workers also needed to be ineligible for the Earned Income Tax Credit.
If you lost your job in 2020 you can use income from 2019 to qualify.
17 to 20 million people can qualify for this credit this year.
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