In the United States, the effects of the pandemic are still being felt, and because of the unusual situation, many things that stopped moving in 2020 are still going on.
A common thing that many Americans forgot to do was file their 2020 tax return. Now, the Internal Revenue Service (IRS) is giving people who missed this step the chance to make it right.
According to the IRS, there are certain annual income levels below which people do not have to file taxes.
However, it is still a good idea to do so because some tax credits, like the Earned Income Tax Credit (EITC), are refundable and filing is the only way to get the money you are owed.
A lot of people didn’t file their taxes because they lost their jobs at the start of 2020. As a result, they left more than $6,000 in returns that were theirs lying around. Don’t worry, though; you still have time to file and will for a little while longer.
What are the requirements to receive the Earned Income Tax Credit (EITC) IRS tax refund?
To access the EITC refunds, taxpayers must meet certain specific requirements. These include:
- Have dependent children: Households with three qualifying dependent children can receive up to the maximum amount of $6,600. If you have fewer than three dependents, the amount will be lower.
- Be within the income limits: This program is primarily aimed at households with annual incomes below $50,594. However, those with higher incomes or fewer dependents can access smaller amounts.
- Still have the pending return: Only taxpayers who did not file their tax return on time are eligible for this benefit. If you have not already done so, you must file your return by January 14, 2025.
Even though those who meet all the requirements can get up to $6,600, the average return is much lower, falling around the $932 per taxpayer mark.
Meeting all the requirements is hard, but that does not mean that if you did not file on time you should not try to get at least some of the money, as every cent counts nowadays.
How can you get this refund from the IRS?
It’s not hard to get this return, and it shouldn’t take long to find out if you are eligible and if filing would help you. The IRS has the forms you need on its website and in local offices, so it should be easy for you to do it on your own. If you feel like you need help with the paperwork, you can talk to a tax professional.
Before January 14, 2025, all you have to do is file a full tax return for 2020. Make sure to include all of your income and correct information about any qualified dependents.
Remember that you will only be considered if you have all the necessary documents. You can’t file for an extension on this credit again, so please make sure that all the information is correct and complete before you file. If you don’t, you will have missed your chance. Tax experts are a great way to make sure that your return is correct.
What to do if you don’t qualify?
Even though you don’t qualify for the biggest refund, you should still file as long as you meet some of the other requirements. You might still be able to get a smaller refund.
Your income and the number of children who depend on you are both important, but you can still get a refund if you only meet some of the requirements. You can be sure you won’t get any money if you don’t file.
Read Also :- Change in the law on Social Security benefits – This is the situation right now in the Senate