Once the previous year ends and the new year begins, most Americans start to worry about how much they are going to earn from the tax returns or how much they have to pay.
If you haven’t already filed your tax for this year, you should check if you are qualified for this temporary relief EITC (the Earned Income Tax Credit).
->What is the Earned Income Tax Credit?
The Earned Income Tax Credit provides funding to low to moderate-income workers and families (people who work for someone else or own or run a business). It is based on a fixed percentage of income from the first dollar of income until the credit reaches its maximum. Afterwards, it decreases with each dollar of additional income earned until no further credit remains available.
The Earned Income Tax Credit is the most beneficial and refundable tax credit for low and moderate income families.
No matter if you are single, married, with children or not, you may get the Earned Income Tax Credit (EITC) if your income is low or moderate. The Earned Income Tax Credit may reduce the tax you owe or give you a larger refund. The amount you receive will vary if you have children, dependents, have a disability, or if you have other requirements.
->How to To qualify for the Earned Income Tax Credit?
To qualify for the Earned Income Tax Credit you must have earned income (have low to mid income).
Eligibility for the Earned Income Tax Credit is typically defined as follows:
-Have limited investment income: Earn less than $3,650 in investment income during the tax year in which you claim the credit.
-Provide proof of occupational earnings such as wages, salaries, or tips, net money from self-employment, union strike benefits, Long-term disability benefits received prior to minimum retirement age, and tax-free combat pay (box 12 of Form W2 with code Q).
-Have a valid Social Security Number (SSN).
-File tax with the status of a single, married joint filer ( you can’t claim the EITC if your status is married filing separately), head of household, eligible widow or widower.
-Be a U.S. citizen or a permanent resident alien all year.
-Be 25 years or more but under 65 years of age.
Please note again, that the amount of your credit is subject to change depending on whether you are single or married and have no children or the number of children living in the same household, have a disability, or if you meet other conditions.
To find out if you are eligible and how much money you can get, use this calculator on the IRS website here.
On this calculator you are not going to enter your personal identification, you are just going to put general information such as marital status, the number of children… but write the exact amount shown on your income statements as on the W-2s, 1099s, expenses…so prepare the necessary documents to get your result.
If you must pay to file taxes for this year, be sure to choose the one that uses a Preparer Tax Identification Number (PTIN), but in my opinion, I advise you to always choose the freeway with IRS file and you can select from the 9 IRS free file online offers below. Choose the one that is right for you and start your E-file.
1- TaxSlayer
Adjusted gross income (AGI): $72,000 or less
Age: 51 or younger and all age if eligible for EITC
Earned Income Tax Credit (EITC): Provided
Military: Provided
Fed Filing: All state of residence
State Filing: AR, AZ, DC, GA, IA, ID, IN, KY, MA, MI, MN, MO, MS, MT, NC, ND, NY,OR, RI, SC, VA, VT and WV
2- ezTaxReturn.com
Adjusted gross income (AGI): $72,000 or less
Age: All ages
Earned Income Tax Credit (EITC): Provided if AGI criterion is met
Military: Provided if AGI criterion is met
Fed Filing: AL, AR, AZ, CA, CO, GA, IL, LA, MA, MD, MI, MO, MS, NC, NJ, NY, OH, PA, SC, VA, WI
State Filing: No free state tax preparation in any states
3- TurboTax
Adjusted gross income (AGI): $39,000 or less
Age: All ages
Earned Income Tax Credit (EITC): Provided
Military: Provided
Fed Filing: All state of Residence
State Filing: Free state return if you qualify for the federal return
4- Online Taxes at OLT.com
Adjusted gross income (AGI): Between $16,000 and $72,000
Age: All ages
Earned Income Tax Credit (EITC): Provided if AGI criterion is met
Military: Provided
Fed Filing: All state of residence
State Filing: Free state return if you qualify for the federal return
5- 1040NOW
Adjusted gross income (AGI): $71,000 or less
Age: All ages
Earned Income Tax Credit (EITC): Provided if AGI criterion is met
Military: Provided
Fed Filing: All state except for: AK, FL, IN, NH, NV, TX, WA or WY
State Filing: No free state tax preparation in any states
6- Free 1040 Tax Return
Adjusted gross income (AGI): $72,000 or less
Age: All ages
Earned Income Tax Credit (EITC): Provided if AGI criterion is met
Military: Provided
Fed Filing: All state except for: AL, DC, FL, IN, LA, MT, NH, NM, NV, RI, SD, TN, TX or WA
State Filing: No free state tax preparation in any states
7- FileYourTaxes.com
Adjusted gross income (AGI): Between $9,500 and $72,000
Age: 65 or younger
Earned Income Tax Credit (EITC): Provided if age and AGI criteria are met
Military: Provided
Fed Filing: All state of residence
State Filing: Free state return if eligible for a federal return for IA, ID, ND and VT
8- FreeTaxUSA
Adjusted gross income (AGI): $39,000 or less
Age: All ages
Earned Income Tax Credit (EITC): Provided
Military: Provided
Fed Filing: All state of residence
State Filing: No free state tax preparation in any states
9- TaxAct
Adjusted gross income (AGI): $63,000 or less
Age: 56 or younger and all age if eligible for EITC
Earned Income Tax Credit (EITC): Provided
Military: Provided
Fed Filing: All state of residence
State Filing: AR, AZ, DC, GA, IA, ID, IN, KY, MA, MI, MN, MO, MS, MT, NC, ND, NY,OR, RI, SC, VA, VT and WV
After IRS approves your Tax return application, it has until March to issue your refunds if you’re eligible for the Earned Income Tax Credit. In the meantime, you can check the status of your refund online.
If you need help with your taxes, Volunteer Income Tax Assistance (VITA) program offers free tax service to anyone in need. Look at this article for more information.
Lastly, I hope your tax refund will be large this year! 😁😉
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