The pandemic’s aftereffects are still being felt across the United States, and due to the unique circumstances, many processes that stalled in 2020 are still underway. Filing a tax return for 2020 was a typical activity that many Americans neglected, and the Internal Revenue Service (IRS) is now allowing those who skipped this step the opportunity to make amends.
Not everyone is required to file tax returns; the IRS has set yearly income limits below which it is not necessary to file taxes; however, it is always a good idea to do so even if you are not required to, because some tax credits, such as the Earned Income Tax Credit (EITC), are refundable, and filing is the only way to receive the money you are owed.
Because many people lost their employment at the beginning of 2020, they chose not to file, leaving more than $6,000 in unfiled returns. But don’t panic; the filing period is still open and will be for a little while longer.
What are the requirements to receive the Earned Income Tax Credit (EITC) IRS tax refund?
To access the EITC refunds, taxpayers must meet certain specific requirements. These include:
- Have dependent children: Households with three or more qualifying dependent children are eligible for up to $6,600. If you have fewer than three dependents, the payment will be reduced.
- Be within the income limits: This program is primarily aimed at households with annual earnings less than $50,594. Smaller amounts are available to those with greater earnings or fewer dependents.
- Still have the pending return: Only taxpayers who did not file their taxes on time are eligible for this incentive. If you have not yet filed your return, you must do so by January 14, 2025.
Even though those who complete all of the conditions can receive up to $6,600, the average return is far smaller, hovering around $932 per taxpayer. Meeting all of the standards is difficult, but that does not imply that if you did not file on time, you should not attempt to recover at least some of the funds, as every cent matters nowadays.
How can you get this refund from the IRS?
Obtaining this return is rather simple, and it should not take long to determine if you are eligible and whether filing would benefit you. The IRS provides the necessary forms on its website or in local offices, making it simple to complete on your own. If you are unsure, you can get assistance from a tax specialist.
The only thing you need to do is file a complete 2020 tax return, including all income and accurate information regarding qualifying dependents, before the deadline of January 14, 2025.
Remember that only those who have all of the essential documentation will be evaluated, and there are no further extensions available for this credit, so please verify that all of the information is complete and correct before filing, or you will have missed your deadline. Tax professionals are a valuable resource for ensuring that your filing is accurate.
What to do if you don’t qualify?
Even if you do not satisfy the standards for the maximum amount, you should still submit because you may be eligible for a smaller refund. The number of dependent children and the amount of money you make are both crucial, but refunds are only available to individuals who meet some of the requirements. The only way to ensure you don’t receive any money is to not file.
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