There have been some changes this year for the Earned Income Tax Credit (EITC), which might make you eligible.
IRS spokesman, Chris Miller, says it is the largest refundable federal tax credit for low to moderate-income families. “More people qualify for the credit this year because of a change in the rules for 2021. This tax season, younger people than ever before will qualify for the Earned Income Tax Credit, and there is no upper age limit,” Miller says.
He says some qualifiers will see more money. “Single people and couples without children qualify for a credit of just over $1,500. And that’s an increase from 538 dollars previously,” Miller says. “In addition, families with more investment income qualify for the credit. This tax season, you can have up to ten-thousand dollars in investment income — compared to $3,650 dollars in the past.”
Miller says there’s one key requirement that remains. “You have to file a tax return in order to get an EITC. And that applies not only to people who normally file a tax return — but also those people who don’t normally file a tax return,” he says.
Miller says it is worth your while to see if you qualify. He says the majority of people eligible request it and they estimate that one in five eligible taxpayers do not get the credit. Miller says the latest numbers show 75 percent of eligible Iowans apply for the credit. You can find out if you qualify on the IRS website.
“There are other special rules for EITC this year and some permanent changes for the credit overall — and you can find out more by going to our website IRS.gov and putting EITC in the search bar,” according to Miller. The IRS began accepting 2021 tax returns on January 24th, so you can file now and claim the credit.