Many taxpayers, even ones who file regularly and on time, are missing out on important and valuable tax credits. If you are part of a working family that makes less than $60,000 per year, then there is at least one tax credit you need to know about: The Earned Income Tax Credit (EITC).
The EITC is one of the largest income tax credits out there and is available for millions of Americans – but many don’t take it simply because they don’t know they qualify. For those who meet all the requirements – low income, multiple dependents, a valid SSN – the credit can be nearly $7,000! Even better, if you paid less in taxes than the EITC covers, you will get the difference paid back to you!
The EITC isn’t applied automatically. You have to claim it specifically on your annual income taxes, which means you will need to file, even if you aren’t required to. But if you qualify for the EITC, filing when you aren’t required could actually mean the IRS pays you! Check out MVLS’ new EITC Factsheet, and the IRS website, for more information. Keep in mind that claiming the EITC can slow down the processing of a tax return and delay your refund.