August 23, 2021Due to the impact caused by Covid-19, many social programs came into play to help the most vulnerable members of the country's workforce: low-income workers and families. One of these programs is the Earned Income Tax Credit (EITC), created to support this group through timely financial aid.
What Is the Earned Income Tax Credit?The Earned Income Tax Credit (EITC) is a tax credit given to low- to moderate-income workers, serving as a financial boost toward this portion of the country's workforce. The tax credit is refundable, so workers can get their money back, even if they are free of tax-related debts. If you happen to be eligible for this tax credit, you can use the aid to reduce the taxes you owe, and maybe also increase your refund.
Who Qualifies for the Earned Income Tax Credit (EITC)?To qualify for this tax credit, there are a number of factors at play, like family unit, marital status, and the income earned inside the household. If your earned income in 2019 surpasses your accrued earnings in 2020, you may use the 2019 amount to determine your Earned Income Tax Credit for 2020. Now, if your Earned Income Tax Credit outstrips the tax amount you owe, you may request a refund.
What Are the Requirements to Obtain the Earned Income Tax Credit (EITC)?If you think you're eligible for the Earned Income Tax Credit, you must look into the following requirements:
How Can You Request the Earned Income Tax Credit (EITC)?In order to request the Earned Income Tax Credit, you must provide your 2020 tax return. If you still haven't, you can do so during the extension period afforded by the Internal Revenue Service (IRS) which allows taxpayers to file their tax return until May 17, 2021. You can also file your tax return to request the credit if you don't have a pending tax obligation.
Specialized Assistance to Help you Get the Earned Income Tax CreditThese requests often entail a convoluted process, especially when you're not familiar with the proper procedure. This is why we invite you to get specialized assistance from one of our professional tax preparers. They will tell you all you need to know about Earned Income Tax Credit.
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