Now more than ever, it pays to file your taxes. Changes to tax laws mean you could be eligible for thousands of dollars in payments. However, you can only receive them if you file your taxes. If you have children under 18 in your home, you could receive up to $1,800 per child through the Child Tax Credit. If you worked at all in 2021, you could qualify for up to $7,000 through the Earned Income Tax Credit.
Need help? Visit GetTheTaxFacts.org to find more information about these tax credits and set up a free tax preparation appointment (for households earning under $57,000 annually). Call 2-1-1 to schedule your appointment if you are unable to do so online.
CHILD TAX CREDIT – Who is eligible?
If you have children under 18 in your home, you were eligible for monthly cash payments that began in July 2021 through the expanded Child Tax Credit, but you must file taxes in 2022 to receive the second half of your credit.
If you received any Child Tax Credit payments last year, be on the lookout for a letter from the IRS detailing how much you received. You will need this letter to file your 2022 taxes and ensure you get the maximum allowed payment. If you don’t supply this letter with your tax filing, your 2022 payments could be withheld.
If you didn’t receive any monthly payments in 2021, it’s not too late to claim your Child Tax Credit. You may be eligible even if you are not the child’s biological parent, do not usually file taxes, or have low/no earnings.
EARNED INCOME TAX CREDIT – Who is eligible?
The Earned Income Tax Credit (EITC) is available to working families and individuals who meet certain income requirements. The amount of the refund depends on income, filing status, and number of qualifying children claimed on tax returns. For example, a single individual with no children who works and makes less than $21,430 could get back as much as $1,502. A married couple with three or more children who files a joint return, with a combined income of less than $57,414, could receive the maximum EITC of $6,728.
If you worked at all in 2021, you may be eligible for the Earned Income Tax Credit, which provides extra income to workers with low to moderate incomes, up to $57,000. Changes to tax laws mean that more workers are eligible now than ever before.