Kansas workers may get a larger tax refund this year because of the EITC or Earned Income Tax Credit. But to get it, you must file a tax return and claim it.
Jan. 27, marks the 11th anniversary of Awareness Day, a nationwide effort to increase awareness about EITC and free tax preparation sites. This year, IRS is promoting EITC and providing information on other refundable tax credits that you may be eligible for. This includes the American Opportunity Tax Credit, the Child Tax Credit and the Additional Child Tax Credit.
In 2016, 26 million workers received more than $65.6 billion in EITC refunds. In 2016, Kansans filing EITC received $496 million in cash, with an average refund of $2,394.
If you worked last year and had income of less than $53,505, check out your eligibility for EITC. EITC can mean up to a $6,269 refund when you file a return if you have qualifying children. Workers without a qualifying child could be eligible for a smaller credit up to $506. On average, EITC adds 24 hundred dollars to refunds.
Why is it important to have an EITC Awareness Day each year? One-third of the EITC population changes each year. The IRS estimates that four out of five workers claim the EITC they earned. This leaves billions of dollars on the table each year.
We want to get the word out to those who are eligible to file a tax return even if they don’t owe any tax to claim the EITC. It’s money workers can use for groceries, rent, utilities and other bills.
EITC is complex. It varies by income, family size and your filing status. To be eligible, you must have earned income or certain disability income. This means you must have income from working for someone or working for yourself.
Find a volunteer free tax return preparation site at https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers.
And, if you have a dispute with the IRS, contact the Low Income Taxpayer Clinic of Kansas Legal Services (1-800-723-6953) or apply online at kansaslegalservices.org to help you resolve the problem.