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Here’s another cushy tax break you’re not gonna want to this miss this year.The Earned Income Tax Credit is reserved for low-income workers who made under $49,078 last year.
The EITC is pretty simple to apply for, but the IRS has been rolling out reminders to consumers all week leading up to today, National Earned Income Tax Credit Awareness Day.
It doesn’t exactly roll off the tongue, but the EITC’s an important credit to promote since the income bracket flucuates every year, effecting the eligibility status of one-third of all workers.
“The EITC provides a financial boost for millions of hard-working Americans. But people can easily overlook this important credit, especially if their financial situation has changed,” said IRS Commissioner Doug Shulman.
The IRS estimates 20 per cent of Americans who qualify fail to claim the credit each year.
The average credit last year was a cool $2,200, which definitely isn’t chump change if you’re supporting a family on less than $50K per year.
Eligibility is based on a few factors, including income, the size of your brood and your filing status.
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-The credit ranges from $464 for filers without kids and up to $5,751 for those with three or more dependents.
-It’s refundable, which means if you owe less in taxes than the credit, you’ll get a check or deposit with the leftovers.
-How to get it: You must claim it on your 2011 taxes. You can file free at IRS.gov if you make under $57,000. If you qualify for the EITC, you can also have your taxes prepared at these free tax preparation sites. For more info, see www.irs.gov/eitc.