Fantcho Financial is proud to announce that the IRS and its nationwide partners have started their Earned Income Tax Credit Awareness Day outreach campaign to help low-income Americans take advantage of the Earned Income Tax Credit (EITC). The EITC is a valuable tax credit for workers with low to moderate income and is designed to offset the burden of Social Security taxes and encourage work.
In 2022, 31 million eligible workers and families received approximately $64 billion in EITC, with an average amount of over $2,000. The IRS urges taxpayers to check their eligibility for this credit, as millions of eligible people miss out on the EITC every year. Taxpayers who have experienced changes in their job, marital status, or have a new child may be eligible for the first time and should review their eligibility.
To qualify for the EITC, taxpayers must file a tax return, even if they did not earn enough money to be obligated to do so. The EITC Assistant can help determine eligibility. The maximum EITC for taxpayers with three or more dependents is $6,935, for those with two dependents is $49,399, for those with one dependent is $43,492, and for those with no dependents is $560. To claim the EITC, eligible taxpayers must file a tax return and claim the credit.
The quickest way to receive a tax refund is to file an accurate tax return electronically and choose direct deposit. The IRS offers free tax preparation help through Free File on IRS.gov, free tax preparation sites, and through trusted tax professionals. Taxpayers should ensure they have valid Social Security numbers for themselves, their spouse if filing jointly, and for each dependent.