Did you miss some tax credits last year? Good news—you still have time to claim them! The IRS allows taxpayers to file an amended return any time before the normal April 15 deadline, so you have until Nov. 15 this year to file your taxes and claim the tax credits you’re eligible for from last year’s returns.
A federal tax credit for low- to moderate-income employees that was temporarily made more generous last year has a new method for those who do not regularly file taxes.
The earned income tax credit was added on Wednesday to GetCTC.org, a tool for simpler filing. If you do not have any qualifying children, you are only eligible for a maximum earned income tax credit for tax year 2021 of $1,502, which rises to $6,728 if you have three or more children. Your annual adjusted gross income must be below a set amount to qualify.
The website currently allows users to submit their information to collect the third stimulus check, which was worth $1,400 per person, as well as the enhanced child tax credit, worth up to $3,600 per qualified kid.
On GetCTC.org, the payment claim deadline is November 15. The tool is intended for persons who do not generally need to file tax returns with the IRS, such as single filers with an annual income under $12,000 and married couples filing jointly with an income under $25,000.
Access to pandemic-era credits was made easier by legislation.
Each of the three credits was included in the American Rescue Plan, which was put into effect in 2021.
The Act increased the child tax credit for the year from $2,000 per kid to a total of $3,600 each child under the age of 6 and $3,000 per child between the ages of 6 and 17.
Last year, advance payments of up to $300 monthly for children under the age of six and $250 monthly for those under the age of 18 were also made.
However, in order to receive the remaining amounts owing to them, beneficiaries had to submit tax forms.
Additionally, the enlarged child tax credit was made entirely refundable, enabling families with little to no income to apply for it.
The same goes for the enhanced eligibility for the earned income tax credit. More employees without children may apply for the 2021 credit. Also included to the list of qualified employees are younger persons aged 19 to 24 and those 65 and older. Additionally, qualification income thresholds were raised.
The greatest refundable tax benefit is the EITC.
According to senior programme director David Newville, Code for America, the nonprofit group that runs GetCTC.org, is thrilled to introduce the EITC claiming option.
The largest anti-poverty programme in the nation, according to Newville, is the EITC.
According to him, it is the greatest refundable tax credit in terms of monetary amounts.
The earned income tax credit is still not utilised, nevertheless. In the past, up to one-fifth of people who were qualified did not get the funding for which they qualified. As a result, billions of dollars have been dropped, according to Newville.
“Whenever feasible, we want to ensure that people are collecting all of the tax advantages to which they are entitled and getting the largest refund,” said Newville.
how to make an EITC claim
Compared to the child tax credit or stimulus cheques, the earned income tax credit on GetCTC.org has a more complicated application procedure.
The earned income tax credit, in contrast to the other benefits, needs a worker to have at least some earned income that they can prove using a W-2. According to IRS regulations, self-employment or cash income is not acceptable.
The earned income tax credit will now be requested of filers who utilise GetCTC.org if the programme deems that they may be qualified. From there, customers have the option to decline and claim only the stimulus funds and the child tax credit if they so want.
For those planning to claim the earned income tax credit, assemble your documents, especially your W-2s. The technology will enable filers to put their claims on hold and resume them when needed, according to Newville. They can even decide to alter their minds in the midst of the procedure and merely keep making stimulus payments and child tax credits.
Before the IRS closes the e-file system for this year on November 15, filers who intend to use GetCTC.org must do so by that date. If the deadline passes without your filing a tax return for 2021, you can still claim the credits for up to three years.
We’re hoping this will make a significant effort to reach more people and help them receive a significant portion of their tax advantages, according to Newville.