January 31 is EITC Awareness Day

On Jan. 31, EITC (Earned Income Tax Credit) nationwide awareness campaign kicks off for the 14th year.

The EITC awareness campaign alerts millions of workers to this significant tax credit. The EITC is a vital tax credit that helps millions of hard-working families around the nation. It’s critical that people review the credit to see if they qualify.

The EITC is the federal government’s largest refundable federal income tax credit for low to moderate-income workers. It can give taxpayers a refund even if they owe no tax.

The EITC is as much as $6557 for a family with four children or up to $529 for taxpayers that do not have a qualifying child.

Taxpayers earning $55,952 or less can see if they qualify.

Workers who can claim the EITC and are At Risk for Overlooking the Credit:

  • Without children
  • Living in non-traditional families, such as a grandparent raising a grandchild
  • Whose earnings declined, marital status changed, parental status changed
  • With limited English skills
  • Who are members of the armed forces
  • Living in rural areas
  • Who are Native Americans
  • With disabilities or who provide care for a disabled dependent

To get the EITC, workers must file a tax return and claim the credit

By law The IRS cannot issue refunds before mid-February for tax refunds that claim the EITC. The IRS must hold the entire refund- even the portion not associated with EITC

 Beware of Scams

Be sure to choose a tax preparer wisely. Beware of scams that claim to increase EITC refund. Scams that create fictitious qualifying children or inflate income levels to get maximum EITC could leave taxpayers with a pen