Who wouldn’t want to get the extra 300 or even $ 3000 in cash? But, oddly enough, millions of Americans miss this opportunity, every year, says USA Today.
According to estimates by the internal revenue Service, across the country, only 4 out of 5 workers claim and receive tax credit earned income, having a right to it. Thus, approximately 20% of them do not get the money, leaving billions of dollars unclaimed.
This money, based on what you earned in 2019, as a rule, working for low wages. The amount in dollars that Americans receive, can vary greatly and depends on the paycheck, the status of the filing, as well as the size of your family.
“Taxes always scare me. It’s not something I wanted to deal with, said 50-year-old India bell, who lives in Detroit and has two teenagers.
But bell says all about why you need to file a tax return to claim the tax credit on earned income. Bell participated in the annual program of information media, held in Detroit and dedicated to talk about the EITC.
“You earned it. Now apply demand and get,” say to the IRS.
Very often people don’t even know if there is a tax credit. The IRS notes that one third of the population of the United States, applying for the EITC changes every year. People can enter and exit from the program in connection with the change of their marital status, the age of their children and how much money they earn at work.
A few years ago, bell was able to get the service for free filling out tax returns in tax preparation, offered through the public action Agency Wayne metro, and then she realized that as a single working mother, she is entitled to a tax credit on earned income. Bell earned less than $ 25,000 in 2018, foster care for adults Oakland County. And she said she has the right to 5600 dollars in credits for earned income.
She was able to pay some bills by credit card pay an old bill before he got to the sewers, and go on a mini vacation on Mackinac island in Michigan last summer.
“This year I want to pay off credit card debt, combine a few other debts and make repairs in my garage,” she said.
And if you have enough money, the woman wanted to go to Atlanta.
How to find out whether you qualify
You must have some income from work, and you must meet other requirements, including income limits. Your investment income may be only 3600 dollars or less for the year.
Your earned income and adjusted gross income should not exceed 41 094 dollars, if you have one child who qualifies, and you are not married. For a married couple with one child filing a joint tax return in 2019, the limit will be 46 884 dollars.
The more children you have, the higher the income limit. The maximum limit is 55 952 dollars for a married couple, which delivers a joint Declaration with three or more children eligible.
Single people without children may qualify for the loan, with the income 570 15 dollars or below.
The maximum tax credit earned income is 6 557 dollars in tax returns in 2019, but to obtain this level you must have on the content of three or more children.
In the whole country of about 25 million workers and their families received the EITC in about 63 billion dollars.
How much money you can get
The average amount of EITC received in the past year, individuals across the country, amounted to approximately 2476 dollars.
It’s a refundable tax credit, meaning that you can get more from the Federal government than paid in taxes. But the amounts vary considerably.
The maximum loan is $ 529 for those who have no children that meet the criteria, to 3526 of dollars for those who have one child.
The maximum loan amount is 5828 dollars for those who submit an application with two eligible children, and 6557 US dollars to individuals who have three or more children.
The IRS notes that credit EITC varies:
11 to 6557 dollars with three or more children;
from 10 to 5828 dollars with two children;
9 to 3526 dollars with one child;
2 to $ 529 without children.
More than half of U.S. States also have some kinds of tax benefits on earned income in addition to the Federal credit.
How to know whether the criteria for your child
Among other requirements, the child must be under age 19 at the end of the year and younger than you or your spouse, if you file a joint return.
Or the child may be a full-time student at least 5 months of the year at the age of 24 at the end of the year and younger than you or your spouse, if you file a joint return.
Or the child can have a permanent and total disability at any age.
In addition, the child must live with you or your spouse (if you are filing a joint return) in the United States more than half of the year. At the same time allowed various relatives, including a grandchild or sibling.
On the website of the IRS irs.gov there is also a EITC assistant that will help you to determine if you are eligible to receive the tax credit on earned income.
What if it’s too complicated for you
Usually, you can get help. Pay attention to the page, the IRS “Free File” to get your free software that will help and those who receive the tax credit on earned income.
You can also call the IRS at 800-906-9887 phone to get information about volunteering and tax consultation for the elderly. You can find items of such assistance on irs.gov.
How long I have to wait for the money
If you are applying to receive the tax credit on earned income or additional tax credit per child, the IRS cannot issue your refund until mid February. In addition, a three-day holiday weekend that includes presidents Day, affects the terms of repayment.
The IRS will expect a tax refund, which includes money from the first earned income and additional tax benefits for children will be available in Bank accounts of taxpayers or debit cards by the first week of March, if they chose direct Deposit and there are no other problems with their tax returns.
You can check the page “Where’s my refund” to know personal date.