EITC Awareness Day: Tax credit for low- and moderate-income workers

Friday, January 26, 2018

 

Today is Earned Income Tax Credit (EITC) Awareness Day. Created in 1975, the EITC is a tax credit designed to put money back into the pockets of low- and moderate-income workers. The purpose of EITC Awareness Day is to promote the program so that all households that qualify for the credit claim it on their tax return.

The Office of the Comptroller of the Currency (OCC) says that last year more than 25.8 million eligible taxpayers received $63.8 billion in EITCs. The average amount was around $2,470. Unfortunately, only 80 percent of those who qualify every year claim the EITC.

Each year, the IRS increases the income limits slightly. For tax year 2017, filers who meet all other eligibility criteria and whose income and adjusted gross income (AGI) are both below the following limits may be eligible for the EITC, which could result in a refund check even if you don’t have any tax liability:

Single filer, no children: $15,010. Joint filers, no children: $20,600.
Single parent, one child: $39,617. Joint filers, one child: $45,207.
Single parent, two children: $45,007. Joint filers, two children: $50,597.
Single parent, three or more children: $48,340. Joint filers, three or more children: $53,930.

The maximum credits for parents are $3,400, $5,616 and $6,318, depending on the number of qualifying children. The maximum credit for filers without children is $510.

For more information about qualifying for the EITC, read Consumer Action’s updated publication, Get Credit for Your Hard Work. (The Spanish, Chinese, Korean and Vietnamese publications will be updated by mid-February.)

Consumer Action (www.consumer-action.org) has been a champion of underrepresented consumers nationwide since 1971. A non-profit 501(c)(3) organization, Consumer Action focuses on consumer education that empowers low- and moderate-income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change.

 

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