{"id":1827629,"date":"2023-01-29T08:50:18","date_gmt":"2023-01-29T13:50:18","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1827629"},"modified":"2023-01-29T08:50:52","modified_gmt":"2023-01-29T13:50:52","slug":"irs-raises-awareness-about-overlooked-tax-break","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/irs-raises-awareness-about-overlooked-tax-break\/","title":{"rendered":"IRS Raises Awareness About Overlooked Tax Break"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Firs-raises-awareness-about-overlooked-tax-break%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1827629&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A valuable tax credit that many taxpayers normally miss won\u2019t be available to as many Americans as last year.<\/p>\n<p>The pandemic enhancements for the Earned Income Tax Credit (EITC) that increased the tax break\u2019s eligibility expired for the 2022 tax year, leaving millions of Americans either unable to claim it or qualifying for a much smaller amount.<\/p>\n<p>The expiration may compound the likelihood that many Americans who are still eligible for the EITC may disregard it this year. Historically, 1 in 5 eligible Americans don\u2019t claim the credit, prompting the Internal Revenue Service to hold an <a href=\"https:\/\/www.eitc.irs.gov\/partner-toolkit\/eitc-awareness-day\/eitc-awareness-day-2\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:EITC Awareness Day\" class=\"link\">EITC Awareness Day<\/a> each year \u2014 this year on Jan. 27.<\/p>\n<p>\u201cThis is an extremely important tax credit that helps millions of hard-working people every year,\u201d IRS Acting Commissioner Doug O\u2019Donnell said in a <a href=\"https:\/\/www.irs.gov\/newsroom\/on-eitc-awareness-day-irs-and-partners-promote-major-tax-benefit-to-millions-of-low-and-moderate-income-workers\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:statement\" class=\"link\">statement<\/a>. \u201cBut each year, many people miss out on the credit because they don\u2019t know about it or don\u2019t realize they\u2019re eligible.\u201d<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\">\n<div>\n<div class=\"caas-img-container caas-img-loader\"><img class=\"caas-img caas-lazy has-preview\" alt=\"background, no people\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/a52ba6d0-9e7f-11ed-af75-1d4fee89d7bd\" src   style=\"display:none\"><noscript><img decoding=\"async\" alt=\"background, no people\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/a52ba6d0-9e7f-11ed-af75-1d4fee89d7bd\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">background, no people<\/figcaption><\/p>\n<\/figure>\n<p>Last year, the <a href=\"https:\/\/www.irs.gov\/newsroom\/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:American Rescue Act\" class=\"link\">American Rescue Act<\/a> expanded the EITC allowing <a href=\"https:\/\/www.irs.gov\/newsroom\/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:18-24 year olds to qualify and imposing no age limit cap\" class=\"link\">18-24 year olds to qualify and imposing no age limit cap<\/a>. The credit, which helps many low- and moderate-income workers and working families, was made <a href=\"https:\/\/www.irs.gov\/newsroom\/looking-ahead-how-the-american-rescue-plan-affects-2021-taxes-part-1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:fully refundable\" class=\"link\">fully refundable<\/a>. It also tripled the credit amount for workers without qualifying children, benefiting more than <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/03\/08\/fact-sheet-state-by-state-analysis-of-american-rescue-plan-tax-credits-for-families-and-workers\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:17 million people\" class=\"link\">17 million people<\/a>.<\/p>\n<p>Those changes are now gone. As a result, some taxpayers may receive a smaller refund compared with the previous tax year.<\/p>\n<p>This year, you must be 25-64 years old to qualify for EITC \u2014 unlike last year\u2019s pandemic expansion that allowed 18-24 year olds to be eligible. For single filers with no children, the maximum EITC is $560. Last year, the maximum pandemic-era credit was $1,500.<\/p>\n<p>To qualify, you also must have earned income and meet specific adjusted gross income and credit limits for the current, previous, and upcoming tax years.<\/p>\n<figure class=\"caas-figure\">\n<div>\n<div>\n<div class=\"caas-img-container caas-img-loader noheight\"><img class=\"caas-img caas-lazy has-preview\" alt=\"EITC Income Thresholds\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/193cb430-9e7e-11ed-8db7-086faaf98835\" src \/><noscript><img decoding=\"async\" alt=\"EITC Income Thresholds\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/193cb430-9e7e-11ed-8db7-086faaf98835\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Credit: IRS<\/figcaption><\/p>\n<\/figure>\n<p><a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit\/earned-income-and-earned-income-tax-credit-eitc-tables#EITC%20Tables\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Earned income\" class=\"link\">Earned income<\/a> is wages, salary, tips, self-employment, and work from your side hustle or gig \u2014 like temporary work, working as a driver for a ride-share or delivery service, or selling merchandise online. For those in the military, nontaxable combat pay is considered income.<\/p>\n<p>Money received from unemployment benefits, alimony, child support, social security, pensions, or annuities is not considered earned income.<\/p>\n<p>Even if you don\u2019t have a child, you could be eligible for EITC if you meet the income threshold.<\/p>\n<p>If your marital status changed, you\u2019re a member of the armed forces, disabled, living in a rural area, a grandparent raising a grandchild, disabled, or Native American, you may be eligible for this credit.<\/p>\n<p>If you aren\u2019t sure whether you qualify for earned income, use the IRS <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit\/use-the-eitc-assistant\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:EITC Assistant\" class=\"link\">EITC Assistant<\/a> tool.<\/p>\n<p>\u201cIn particular, people who have experienced a major life change in the past year\u2026may qualify for the first time,\u201d O\u2019Donnell said. \u201cThe IRS urges people to carefully review this important credit; we don&#8217;t want people to miss out.&#8221;<\/p>\n<h2><strong>Other key details about EITC<\/strong><\/h2>\n<p>If you\u2019re eligible for EITC, you may qualify for <a href=\"https:\/\/finance.yahoo.com\/news\/taxes-how-to-file-your-taxes-for-free-in-2023-132636739.html\" data-ylk=\"slk:free;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">free<\/a> tax-filing services.<\/p>\n<p>If you made $60,000 a year or less, you get free tax preparation at the <a href=\"https:\/\/www.benefits.gov\/benefit\/1543\/#:~:text=What%20is%20Volunteer%20Income%20Tax%20Assistance%20%28VITA%29%3F%20The,need%20assistance%20in%20preparing%20their%20own%20tax%20returns.\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Volunteer Income Tax Assistance\" class=\"link\">Volunteer Income Tax Assistance<\/a> (VITA). VITA offers free tax preparation for moderate- to low-income individuals, disabled, senior citizens, or those who have a language barrier.<\/p>\n<p>If you made $73,000 or less, visit the <a href=\"https:\/\/www.irs.gov\/filing\/free-file-do-your-federal-taxes-for-free#what\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:IRS free file options\" class=\"link\">IRS free file options<\/a> for name software products that let you electronically file your return.<\/p>\n<p>Last, if your refund is partially based on the EITC or the Additional Child Tax Credit (ACTC), the IRS cannot issue your tax refund <a href=\"https:\/\/content.govdelivery.com\/accounts\/USIRS\/bulletins\/3426851?reqfrom=share\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:before mid-February\" class=\"link\">before mid-February<\/a> \u2014 even if your refund includes other credits not related to EITC. The IRS estimates most EITC filers will see their refunds by Feb. 28 if there are no issues with their returns.<\/p>\n<p>Taxpayers should electronically file and use direct deposit for refunds to prevent delays.<\/p>\n<p><em>Ronda is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on Twitter <\/em><a href=\"https:\/\/twitter.com\/WritesRonda\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:@writesronda\" class=\"link\"><em>@writesronda<\/em><\/a><\/p>\n<p><a href=\"https:\/\/money.yahoo.com\/\" data-ylk=\"slk:Read the latest personal finance trends and news from Yahoo Finance.\" class=\"link\"><em>Read the latest personal finance trends and news from Yahoo Finance.<\/em><\/a><\/p>\n<p><em>Follow Yahoo Finance on <\/em><a href=\"https:\/\/twitter.com\/YahooFinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Twitter\" class=\"link\"><em>Twitter<\/em><\/a><em>, <\/em><a href=\"https:\/\/www.instagram.com\/yahoofinance\/?hl=en\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Instagram\" class=\"link\"><em>Instagram<\/em><\/a><em>, <\/em><a href=\"http:\/\/youtube.com\/c\/yahoofinance?sub_confirmation=1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YouTube\" class=\"link\"><em>YouTube<\/em><\/a><em>, <\/em><a href=\"https:\/\/www.facebook.com\/yahoofinance\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Facebook\" class=\"link\"><em>Facebook<\/em><\/a><em>, <\/em><a href=\"https:\/\/flipboard.com\/topic\/yahoofinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Flipboard\" class=\"link\"><em>Flipboard<\/em><\/a><em>, and <\/em><a href=\"https:\/\/www.linkedin.com\/company\/yahoo-finance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LinkedIn\" class=\"link\"><em>LinkedIn<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A valuable tax credit that many taxpayers normally miss won\u2019t be available to as many Americans as last year. The pandemic enhancements for the Earned Income Tax Credit (EITC) that increased the tax break\u2019s eligibility expired for the 2022 tax year, leaving millions of Americans either unable to claim it or qualifying for a much &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1827632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[15453,5324,8362,15151,4224,8360],"class_list":["post-1827629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-awareness","tag-break","tag-irs","tag-overlooked","tag-raises","tag-tax"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1827629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1827629"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1827629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1827632"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1827629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1827629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1827629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}