Are you eligible for an earned income tax credit?
If you weren’t last year, that might have changed.
Under the new guidelines, more people without children are eligible to receive the federal Earned Income Tax Credit (EITC), the federal government’s largest refundable tax credit for low-to-middle income families, according to the report. ‘Internal Revenue Service.
The tax claim could help taxpayers earn an even bigger return, but according to the Illinois Department of Revenue, many Illinois residents are missing out.
The EITC and its Illinois counterpart, the Illinois Earned Income Credit (EIC), could provide greater returns to eligible filers. But you will have to claim it on your tax return in order to see the benefits.
In a change from years past, the federal credit is now available for younger workers and seniors without children. To be eligible, workers must be at least 19 years old and over 64, according to the IRS. Previously, the single person credit was only available to people between the ages of 25 and 64.
Beneficiaries may also qualify for a larger credit if their income earned in 2019, before the pandemic, was greater than their income in 2021.
The IDOR says residents who owe no tax may still be eligible for the credit.
“A family’s eligibility may change from year to year, so we continue to urge all working taxpayers to check their eligibility status and ensure they are claiming both state credits and to maximize savings,” David Harris, director of IDOR, said in a statement.
The refundable credit is worth up to 18% of federal claims, for those who qualify.
In 2021, more than 74,800 Illinoisans claimed the federal credit but did not claim the state version. The number, however, was a significant jump from the previous year, when about 13,000 Illinois residents claimed the federal credit and not the state version.
According to state tax authorities, $29.8 million was unclaimed in 2021 alone.
To be eligible, taxpayers must meet income and residency criteria and file a tax return, even if they do not owe taxes or are not required to do so. Illinois residents must be eligible for the federal earned income tax credit in order to receive the state credit.
According to IDOR, the earned income tax credit can mean up to $6,728 in reimbursement when a taxpayer files a return with eligible children. Workers without qualifying children may qualify for a smaller credit of up to $1,502. According to the IRS, the average amount credited for 2020 was $2,411.
To find out if your family is eligible for the credit, click here.