The EITC helps workers who earned $59,187 or less when they filed their tax return in freelancing.
Unfortunately, many people risk losing their credit because they don’t know they’re eligible especially people who have had a major life change and may qualify for the first time this year.
Living in non-traditional households, such as a grandparent raising a grandchild.
whose earnings have decreased or whose marital or parental status has changed.
Without children.
With limited English skills.
Who are the veterans?
Life in rural areas.
Who are Native Americans?
With income less than the filing requirement.
Taxpayers can check their eligibility and how much they’re entitled to at IRS.gov/eitc.
The EITC is a tax credit for certain people who work and have low to moderate incomes. A tax credit usually reduces the tax owed and can also lead to a refund.
Although the IRS began accepting 2022 returns on January 23, 2023, the IRS cannot issue a refund that includes the EITC until mid-February.
This is because of the PATH Act of 2015, which provides this additional time to protect against fraudulent refunds.
The Where’s My Refund? the tool should store refund status by February 18 for most first EITCs. Most EITC-related refunds should be available in bank accounts or debit cards by February 28 if the taxpayer chose direct deposit and there are no other issues with their tax return.
The EITC is a tax credit for certain people who work and have low to moderate income.
A tax credit usually reduces tax owed and may also result in a refund. Even though millions of people get the EITC, the IRS estimates that about 20% of EITC eligible taxpayers do not claim it.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.
There’s no need to guess about EITC eligibility; find out with the EITC Assistant.
Workers with qualifying children may be eligible for EITC if their adjusted gross income (AGI) was less than $53,057 in 2022 ($59,187 for married filing jointly).
These individuals can receive a maximum of $6,935 in EITC, up from $6,728 in 2021.
The maximum EITC for taxpayers with no dependents is $560, available to filers with an AGI below $16,480 in 2022 ($22,610 for married filing jointly).
It can be claimed by eligible workers between the ages of 25 and 64. Married but separated spouses who do not file a joint return may qualify to claim EITC if they meet certain requirements.
Sources: freelancersunion