It has been a difficult two years for many people in the United States, but many taxpayers across the country have been able to get support through various tax credits and help from the Internal Revenue Service (IRS). ). An example is the Earned Income Tax Credit (EITC)), which, according to the IRS, “helps low-to-moderate income workers and families.”
Earned income tax credit: who can claim it and how to claim it
Thanks to the EITC, this year, low-to-middle-income workers can claim $1,502 to $6,728 on their tax return. The amounts of the tax credit depend on the number of children or dependents a taxpayer has, as well as his annual income. The credit can be used to reduce taxes owing or increase the refund payable.
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It should be noted that, due to the coronavirus pandemic, two enhancements are being applied to the EITC in 2022. These are for those without children or dependents who will receive an extension, raise the EITC from $560 to $1,502; and, in addition, eligible taxpayers can invest income earned in 2019the year before the pandemic, on their return if this amount gave them a larger credit.
Tax season has reached a critical point, with people due to file by today, April 18, for the EITC, although this could be extended until October 17.
In summary, here are the different amounts you can receive under the EITC and the income you need to claim the credit on your return:
For more details on this and more from the IRS, head over to their official website.