The IRS, the Department of Treasury and other non-government partners are kicking off EITC (Earned Income Credit) Awareness to promote the refundable tax credit for low-wage workers with children. There is special day held once a year to promote this important tax initiative to help families earning below a certain income limit and are eligible for the EITC.
“Believe it or not, there are many taxpayers who are eligible to receive the Earned Income Credit, but fail to claim it simply because they are not informed,” claimed U.S. Treasurer Anna Escobedo Cabral.
According to IRS data, over 22.4 million taxpayers received more than $43.7 billion from the EITC last year. However, they estimate that approximately one in four eligible taxpayers fail to claim the EITC.
“Ensuring that more eligible families receive their EITC is important this year, as it is every year. I encourage people all across America to check to see if you are eligible for the Earned Income Tax Credit,” said Treasury Secretary Henry M. Paulson, Jr.
IRS EITC Awareness
IRS invites community organizations, elected officials, state and local governments, schools, employers, and other interested parties to join a national grassroots effort on EITC Awareness Day, January 30, 2015, to spotlight EITC. IRS estimates four of five eligible taxpayers claim and get this important credit. Help ensure everyone gets the EITC they earned. Best of all, EITC is a financial boost for working people and your local economy.
EITC is for workers whose income does not exceed the following limits in 2014:
- $46,997 ($52,427 married filing jointly) with three or more qualifying children
- $43,756 ($49,186 married filing jointly) with two qualifying children
- $38,511 ($43,941 married filing jointly) with one qualifying child
- $14,590 ($20,020 married filing jointly) with no qualifying children
- ** Investment income must be $3,350 or less.
EITC can be a boost to you, your family and community. Anyone with earnings of $52,427 or less should see if they qualify at www.irs.gov/eitc or visit a volunteer tax assistance site.
Four of five eligible workers claim and get their EITC. We want to raise that number to five out of five. You earned it, “now file, claim it and get it.” See if you qualify at www.irs.gov/eitc.
Workers at risk for overlooking claiming the EITC include:
- Living in non-traditional homes, such as a grandparent raising a grandchild
- Whose earnings declined or whose marital or parental status changed
- Without children
- With limited English skills
- Living in rural areas
- Who are Native Americans
- With earnings below the filing requirement
- Who have disabilities or are raising children with disabilities
If you qualify for the Federal EITC, you may also be eligible for a similar credit from your state or local government. Twenty-four states, plus local municipalities including the District of Columbia, New York City and Montgomery County, Maryland, offer residents an earned income tax credit for 2014.