Earned income tax credit up to $6,728: who can claim it and how to claim it?
Taxpayers in the US can claim the Earned Income Tax Credit for up to $6,728. Here’s everything you need to know about who can claim it and how to go about it.
It has been a challenging couple of years for many in the United States but support has been available to many taxpayers across the country through various tax credits and assistance from the Internal Revenue Service (IRS). One example of this is the Earned Income Tax Credit (EITC), which, according to the IRS, ‘helps workers and families with low to moderate incomes’.
Earned income tax credit: who can claim it and how to claim it
Thanks to the EITC, this year, workers with low to moderate incomes 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 their annual income. The credit can be used to reduce taxes owed or increase the refund payable.
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Of note to many is that, due to the coronavirus pandemic, there are two enhancements applied to the EITC in 2022. These are for individuals without children or dependents who will receive an extension, bringing the EITC from $560 to $1,502; and, in addition, eligible taxpayers can place income earned in 2019, the year before the pandemic, on their return if that amount would cause them to receive a larger credit.
Tax season has reached a critical point with people having to file by today, 18 April for the EITC, although this can be extended to 17 October.
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:
- $1,502 for taxpayers without children or qualifying dependents
- If you are a single taxpayer, you must have income less than $21,430. Couples filing jointly must earn less than $27,380.
- $3,618 with a single child or dependent
- You are eligible if you earn less than $42,158 and file as a single filer or up to $48,108 if you file jointly.
- 5,980 with two children or dependents
- To be eligible you need income of less than $47,915 as a single filer or up to $53,865 if filing jointly.
- 6,728 with three or more children
- You are eligible if you earn less than $51,464 as a single filer or up to $57,414 if filing jointly.
For full details on this and more from the IRS, head over to their official website.