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Annually, the Internal Revenue Service (IRS) reaches out to taxpayers across America who earned $49,078 or less to offer a little tax relief by way of the Earned Income Tax Credit (EITC).
The EITC varies according to your income, family size and filing status. Basically, it is a federal refund for taxpayers with low to moderate incomes. And eligible taxpayers may still get a refund even if they don’t owe taxes.
Eligible workers often miss out on it because they either don’t claim it or don’t file a tax return. This is especially true if their financial situation has changed; something that has happened to a lot of Americans over the last few years.
You can easily find out if you qualify just by visiting IRS.gov and answering a few questions using theEITC Assistant.
To get your EITC refund, you have to:
- Have had earned income through employment, self-employment or farming
- Have a valid social security number
- Be a U.S. citizen or resident alien, or a non-resident alien married to a citizen or resident alien
- Be 25 years or older
- Have investment income of less than $3,150
- Not be claimed on someone else’s tax return
- File a tax return
There are additional stipulations with regard to how you file (single or married) and whether you have filed Form 2555 (foreign income). However, in this climate of continuing financial struggle, taking the time to determine if you are eligible for some tax relief from the IRS is well worth the time investment.