Today, National Disability Institute (NDI) celebrates Earned Income Tax Credit (EITC) Awareness Day. The Earned Income Tax Credit (EITC) is a pathway out of poverty for millions of American taxpayers.
In 2019, about 25 million eligible workers and families claimed about $63 billion in EITC, averaging about $2,476 per claim nationwide.
The EITC is available to low- and moderate-income working families and individuals. The credit changes every year and is based on factors such as earnings, number of qualifying children and marital status.
To claim the EITC, you must meet certain requirements and file a tax return with the IRS, even if you do not owe any tax or are not required to file. You can use the online EITC Assistant, available in English and Spanish, to find out if you are eligible for EITC and estimate the amount of your credit.
The EITC is a financial boost to workers, families and communities. It can give people the financial boost they need to make rent or mortgage payments; buy food, medicine and other essentials; and improve their quality of life. Yet, it’s frequently overlooked; one in five taxpayers who qualify for the credit don’t claim it.
Each year, billions of dollars go unclaimed because individuals do not claim tax credits like the EITC or do not file a tax return. People with disabilities often worry that tax credits like the EITC will endanger their Medicaid eligibility or impact their public benefits. However, filing a tax return and claiming the EITC will not affect eligibility for benefits like SNAP, SSI, Medicaid, cash assistance or public housing. Learn more.
Anyone with earnings of $55,952 or less should see if they qualify for the EITC at www.IRS.gov/eitc or visit a volunteer tax assistance site.
Join NDI to help educate others about EITC and be a part of the conversation on social media by using #EITC and #EITCAwarenessDay.