MMillions of low-income Americans are eligible for specific tax relief.
the Earned income tax credit aimed to help low-income people with a one-time tax break for a group of workers who don’t benefit much.
Low-income workers without children can receive a credit of up to $1,500tripling the 2020 credit offered.
the $1.9 trillion in pandemic relief enacted last year, raised income limits and expanded the age of eligible workers.
“The US rescue plan allows anyone 19 and overwho is not a full-time student [and] who has income, to claim the expanded EITC. It expanded both age and income eligibility and increased the credit,” said Kris Cox, deputy director of federal fiscal policy at the Center on Budget and Policy Priorities.
Taxpayers without children earning up to $21,430 employed or self-employed can claim the credit when filing their income tax return.
Any worker of 19 years or older who meets the income guidelines may be eligible for the credit. Homeless 18 years old who were in foster care can also benefit from the tax reductions.
the Earned income tax credit has been called America’s most effective anti-poverty program.
The program was created by President Gerald Ford and raise more than 5 million people above the poverty line.
How to claim the credit
“Taxpayers shouldn’t have to pay anything to claim the credit. Anyone whose income is low enough to qualify also has the right to file their tax return for free, either through the IRS’ Free File program, or at one of hundreds of volunteer-run tax preparation sites across the country.”
“For those filing on paper or via free fillable forms, the EITC appears on Form 1040 – no additional documentation is needed. (Taxpayers with children will also need to file Schedule EIC,” posted Irina Ivanova.