Sure, it’s kind of a mouthful but Earned Income Tax Credit (EITC) Awareness Day is all about spreading the word and educating consumers on an annual opportunity to save money. This week, we’re doing our part to share the news and celebrate the chance for our customers to keep some of the cash they’ve worked so hard for all year.
We’ll start with the basics, like:
- What is the Earned Income Tax Credit?
- Who is eligible to file for the Earned Income Tax Credit? How do I find out to file my claim?
- What are the savings associated with the Earned Income Tax Credit?
- As always, if you have lingering questions after reading this post or would like assistance determining whether you can take advantage of the Earned Income Tax Credit, we’re standing by to help!
EITC: Who, What, When, Where, Why?
This year, January 31, specifically, marks the 15th annual EITC Awareness Day, a campaign that the IRS initially launched to increase awareness about this important tax credit.
According to IRS Commissioner Chuck Rettig:
“The EITC is a vital tax credit that helps millions of hard-working working families around the nation. It’s critical that people review the credit to see if they qualify. Increasing awareness about the EITC is important, and the IRS is proud to support the ongoing efforts by partner groups across the country for sharing this critical information with taxpayers.”
We want to make sure that all of our customers are aware of the EITC and may determine whether or not they are eligible to reap the benefits. Many of you will remember the 5 Ws and 1 H from your school years and this structure of inquiry is still useful today. We’re going to rely on it to make sure we cover all of the important details about the EITC.
Who is eligible to file for this tax credit? The IRS offers a comprehensive list of candidates who can file for the EIC tax credit. It’s important to check this list because, according to the IRS, four of five eligible taxpayers claim and get the EITC. In other words, the odds could be in your favor.
The EITC tax credit helps those who are employed but who have a low or modest income. While it does save you money it can also lower the amount of taxes you owe the federal government, if any at all, which could then help you earn a refund after you’ve filed for the year. It’s important to note that the EITC might also be referred to as the Earned Income Credit or simply EIC. So, be on the lookout for that acronym as well.
If eligible for the credit, simply file your tax return by the April 15th deadline and the IRS will review your claim.
It’s easy to file online from the comfort of your home, office, or wherever you have a reliable internet connection.
The whole reason to pursue the EITC tax credit is to lessen your financial burden by keeping more of the money you earned during the year, and/or establishing a ground for a refund.
Hop online to file for free at IRS.gov. If you need help, the IRS can also connect you with tax preparers at pro-bono tax preparation sites who will assist you with filing your tax return.
At Franklin Savings Bank, we’re all about protecting your assets. If you need help checking your status as a potential EITC candidate, give us a call and we’ll gladly set up a time to review your financials with you.