The Earned Income Tax Credit is a critical, and often underutilized, tax credit for low- to moderate-income households. Each year, the Internal Revenue Service (IRS) recognizes Earned Income Tax Credit Awareness Day to help raise awareness for families and individuals to claim their Earned Income Tax Credit (EITC).
Many ALICE (Asset Limited, Income Constrained, and Employed) individuals may qualify for the Earned Income Tax Credit, among other tax credits, when they file a tax return this season. The EITC is an opportunity for many low- to moderate-income households to get back otherwise unclaimed refunds, and potentially decrease money they may owe. The Center on Budget and Policy Priorities reports that “working family credits lifted an estimated 9 million people out of poverty, including 5 million children."
Other tax credits ALICE households may be eligible to claim include the Child Tax Credit (CTC), the Additional Child Tax Credit (ATC), the Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC).
To claim the Earned Income Tax Credit, you must file Form 1040, U.S. Individual Income Tax Return or Form 1040 SR, U.S. Tax Return for Seniors. To learn more, click here.
For free help filing your taxes, visit uwc.211ct.org/taxhelp and learn more about VITA (Volunteer Income Tax Assistance). To find out if you qualify, click here.