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Did you work in 2020?

You may be eligible for up to $6,660 in Earned Income Tax Credit (EITC)
– even if you don’t owe taxes.

The EITC is a refundable federal income tax credit for low- and moderate-income working individuals and families. A tax credit is a dollar-for-dollar reduction of taxes owed. Since it is a refundable credit, when the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, or most Temporary Assistance for Needy Families (TANF) payments.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be required to file a tax return.

 Are You Eligible?

To be eligible for the Earned Income Tax Credit (EITC) you must:

  • Have earned income from employment, self-employment or another source.
  • Have a valid Social Security Number.
  • Be a U.S. citizen or resident alien for the past year. If you’re a nonresident alien, you must be married to a U.S. citizen or legal resident and filing a joint tax return.
  • Have no more than $3,600 in investment income.
  • File a joint tax return if married.
  • Live in the U.S. for more than half of the year, if you aren’t claiming any qualifying children.
  • Be 25-64 years of age, if you aren’t claiming any qualifying children (if you are claiming qualifying children, you can be any age).

EITC INCOME GUIDELINES

SINGLE, HEAD
OF HOUSEHOLD,
WIDOWED
Earned Income and
Adjusted Gross Income
Must Be Less Than:
MAXIMUM
CREDIT
No Qualifying Children $15,820 $538
One  Child $41.856 $3,584
Two Children $47,440 $5,920
Three or More Children $50,954 $6,660
MARRIED,
FILING JOINTLY
Earned Income and
Adjusted Gross Income
Must Be Less Than:
MAXIMUM
CREDIT
No Qualifying Children $21,710 $538
One  Child $47,646 $3,584
Two Children $53,330 $5,920
Three or More Children $56,844 $6,660

Other Credits You May Qualify For: If you qualify for the EITC, you may also qualify for other tax credits. Follow these links for more information and be sure to include the necessary documents with your tax-related documents (described in the “What to Bring” section of the Intake Packet) you drop off at the preparation site.

 

Looking for more information about VITA tax prep services in Nashua & Hudson? Follow these links:

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