Jan. 31 is Earned Income Tax Credit (EITC) Awareness Day

Friday, January 31, 2020

 

Today, Jan. 31, 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. However, the program remains underutilized, with only an estimated four out of five eligible workers claiming the EITC they’re entitled to. 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.

Qualifying workers can get money from the government even if they don’t owe any taxes—but they must file in order to claim the credit, even if their income is so low that they normally would not file a tax return.

IRS statistics for 2019 show that 25 million eligible workers and families received about $61 billion in EITC last year, with the average credit being $2,504—enough to have a real impact on a low- or moderate-income household’s financial wellbeing.

For the 2019 tax year (2020 tax filing season), the EITC can put as much as $6,557 back into the pockets of low- and moderate-income working parents, and up to $529 for workers without children.

For more information about qualifying for and claiming the EITC, as well as where to get more information and free tax prep assistance, read Consumer Action’s updated Get Credit for Your Hard Work, available (free) in English, Spanish, Chinese, Korean and Vietnamese.

 

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