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.
The EITC is available to low and moderate-income working families and individuals. This tax credit gives working families the financial boost they need to make rent or mortgage payments; buy food, medicine and other essentials; improve their quality of life; and contribute to the economy. The credit changes every year and is based on factors such as earnings, number of qualifying children and marital status. To claim the EITC, a tax return must be filed with the IRS with proper documentation. Find out if you qualify to claim the EITC.
The EITC is often regarded as one of the most effective anti-poverty initiatives set up by the federal government. Yet, it’s often overlooked and underutilized by taxpayers. Nationwide during 2018, more than 25 million eligible workers and families received about $63.8 billion in EITC, and the average amount of EITC received was about $2,488. However, it is estimated that 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.
Use the online EITC Assistant at www.irs.gov to help you determine if you are eligible. The 2018 tax year versions are available in both English and Spanish.
EITC has made a difference in the lives of countless people with and without disabilities. Join us to help educate others about EITC and be a part of the conversation on social media by using: #EITC and #EITCAwarenessDay.