Today, National Disability Institute (NDI) celebrates Earned Income Tax Credit (EITC) Awareness Day, which promotes a valuable credit and pathway out of poverty for millions of American taxpayers.
The Earned Income Tax Credit (EITC) is designed to help low-to-moderate-income workers and families get a tax break that can reduce taxes owed and may increase refunds. The tax credit can provide a financial boost to workers, families and communities by helping with rent or mortgage payments, grocery bills and medical needs and improve quality of life, but it is frequently overlooked.
One in five taxpayers who qualify for the credit do not claim it! In fact, 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, Supplemental Security Income (SSI), Medicaid, cash assistance or public housing. Watch this video to learn more about how individuals with disabilities and others may be missing out.
In the past year, 25 million eligible workers and families received about $62 billion in EITC. The credit changes every year and is based on factors such as earnings, number of qualifying children and marital status.
The credit is for workers whose income did not exceed the following limits in 2021:
- $51,464 ($57,414 married filing jointly) with three or more qualifying children
- $47,915 ($53,865 married filing jointly) with two qualifying children
- $42,158 ($48,108 married filing jointly) with one qualifying child
- $21,430 ($27,380 married filing jointly) with no qualifying children
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. To see if you qualify for the EITC, visit the IRS EITC website.
Help NDI spread the word to workers with disabilities and educate others about EITC. Join the conversation on social media by using #EITC and #EITCDay.