Millions of dollars in Earned Income Tax Credits (EITC) go unclaimed each year — is some of it yours? That’s the question posed by the Washington State Department of Commerce to anyone earning up to $55,952.
Many people are eligible to receive the federal EITC, but it often goes unclaimed. In fact, the Internal Revenue Service (IRS) estimates 20 percent of those eligible either do not claim the benefit on their taxes or do not file a tax return at all. Seniors, individuals with low incomes, and non-English speaking taxpayers account for much of the unclaimed credits because they don’t realize they are eligible. The credit reduces the amount of taxes owed and results in a lump sum refund payment for most people who are eligible to claim it.
In order to take advantage of this benefit, you must file a federal income tax return with the IRS even if you owe no income tax or are not otherwise required to file a tax return. Last year, the average EITC was $2,205.
In 2019, 388,000 Washington residents applied for the credit, claiming $856 million in refunds. This year, individuals can receive a tax refund of up to $6,557 if they meet eligibility requirements.
To learn more, visit this website.
Thumbnail photo by Pepi Stojanovski on Unsplash