Taxpayers requesting the Earned Income Credit (EITC) on your tax return this year at Internal Revenue Service (IRS) – one of those that increases the refund by up to more than $ 6,000 – they will be able to use the income earned in 2019 to calculate the corresponding amount.
The above is a new option this year, the IRS said in a statement Tuesday.
Similarly, the alternative is applicable to those who claim the Additional Child Tax Credit (CTC) that grants up to $ 2,000 dollars annually for each child under 17 years of age.
“As a novelty this year, Taxpayers can use their 2019 earned income to figure their 2020 EITC and Additional Child Tax Credit if their 2019 earned income was more than their 2020 earned income. To qualify for the EITC, individuals must have earned income, so this option can help workers who earned less in 2020, or received unemployment income in instead of their regular wages, get bigger tax credits and refunds next year ”, indicates the IRS on its website.
Workers who earned $ 56,844 or less can apply for the EITC. The IRS estimates that four out of every five eligible taxpayers claim and get the EITC.
The most recent data from the IRS indicates that, a Nationally in 2020, nearly 25 million taxpayers received more than $ 62 billion in EITC. The average amount of EITC received was $ 2,461 per return. The EITC can award up to $ 6,660 for a family with three or more children or up to $ 538 for taxpayers who do not have a qualifying child.
In the case of this credit, the IRS online tool EITC Assistant helps users determine their eligibility.
The Voluntary Taxpayer Assistance Program (VITA) and the Tax Counseling Program for the Elderly (TCE) can help you with your doubts about these credits and claim them if you are eligible.
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