LOW INCOME WORKERS MAY QUALIFY FOR FEDERAL TAX CREDIT

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February 19, 2021
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Here is a tip to make life a little easier for workers by alerting them about a special tax credit that can put money in their pockets.

EITC is a tax benefit for working people and their families and it allows more dollars to flow into our community. It's money workers can use for groceries, rent, utilities and other bills we want workers who may qualify for EITC to have all the information they need to get the EITC and get it right.”

Join the millions who received the EITC. In 2020, the credit returned about $2.3 billion dollars to 908,000 Illinois working families.The amount of EITC varies by income, family size and filing status. It can mean up to 538 dollars in EITC for people without a qualifying child, and up to $6,660 for those with three or more qualifying children. On average in Illinois, EITC adds $2,503 to refunds.

If you qualify for EITC, you must file a tax return, even if you have no tax to pay, to claim the credit. Workers should know you earned it, now file, claim it and get it.

With the exception of some who receive certain disability income, you must work for someone, or run your own business or farm to qualify for EITC. Workers who made less than $56,844 should see if they qualify for EITC using the EITC Assistant tool at www.irs.gov/eitc. This 2020 tax year version of this tool is available January 2021.

Find out if you are eligible using the EITC Assistant; it’s available in both English and Spanish. The Assistant helps you:

  • find your filing status,
  • find out if you have a qualifying child or children,
  • verify if you are eligible for EITC, and
  • estimate the amount of your credit.

Let the Assistant help you get it and get it right. Visit www.irs.gov/eitc to find the Assistant.

Also, if you make less than $57,000, you qualify for free tax return preparation through volunteer sites. IRS-certified volunteers prepare your tax return and find out if you qualify for EITC and other refundable credits. Find a location for free tax return preparation near you at search VITA.

But, make sure you get the right amount of credit due you. If you have someone prepare your return, make sure to bring the following to your preparer:

  • A valid driver's license or other photo ID card
  • Social security cards, a social security number (SSN) verification letter for all persons listed on the return
  • Birth dates for all persons listed on return
  • All income statements: Forms W-2 and 1099, Social Security, unemployment, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If you run a business or farm, records of all income earned.
  • All records of expenses, such as tuition, mortgage interest or real estate taxes. And, if you run a business or farm, records of all related expenses.
  • Copies of last year's state and federal tax returns, if available
  • Bank routing numbers and account numbers to direct deposit any refund
  • Dependent child care information: name and address of who you paid and either the caretaker's SSN or other tax identification number
  • If you purchased coverage through the Health Insurance MarketplaceForm 1095-A PDF
  • Both spouses to sign forms to e-file a joint tax return