According to the Internal Revenue Service, more people who do not have children are now eligible for a larger tax break.
The Earned Income Tax Credit (EITC) is the largest refundable tax credit available to low- and moderate-income families from the federal government. The amount of taxes owed can be reduced, and the amount of the refund can be increased for those who qualify.
According to the IRS, the credit was previously reserved for eligible working families, but the age bracket has now been broadened to include more low-income workers without children.
Now, depending on their income, the following organizations may also be eligible for the tax credit:
You must be at least 19 years old and have no children.
Older than 64 years old with no children under the age of 18 and who was formerly in foster care or who was in a homeless shelter
Individuals between the ages of 25 and 64 were previously eligible for the Earned Income
Tax Credit (EITC) if they did not have any dependents.
This year’s EITC will benefit from significant changes, according to IRS Commissioner Chuck Rettig, who stated, “This credit will benefit more hard-working families because of these changes.”
“We encourage anyone who may be eligible for this valuable credit to carefully review the guidelines; many people each year fail to do so, resulting in money being left on the table.”
Our goal for today is to ensure that everyone who qualifies for the EITC is aware of it and that they have access to all the information they require in order to obtain it.”
If you are working with a tax preparer to file your taxes, the IRS recommends that you tell them to check to see if your income qualifies you for the tax credit before you file.
If you prepare your own taxes, the IRS recommends that you file electronically because the online software will ask you the questions necessary to determine whether or not you qualify for a refund.
As a final note, the IRS advises that you should determine if your pre-pandemic income levels in 2019 are sufficient to qualify for a larger credit this year. More information can be found on page 7 of this document, under the section titled “Prior year (2019) earned income.”
To learn more about the changes to the EITC that will take effect this year, please visit this page.
In a reminder to taxpayers, the IRS says that filing an accurate tax return electronically and electing direct deposit for their refund is the quickest way to receive a refund.