Jan. 29 is Earned Income Tax Credit (EITC) Awareness Day! The EITC is a refundable tax credit and is one of the biggest tax breaks for working people. Working families with three or more qualifying children could be eligible for up to $6,600. The purpose of EITC awareness day is to coordinate awareness events and other information-sharing activities to educate as many people as possible about EITC on the same date. For more information on claiming the EITC and eligibility qualifications, please click here.
For claiming the EITC for the 2020 tax year, unemployment payments and other unearned income received could affect the amount of earned income a worker can claim. However, under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, taxpayers may elect to use their 2019 earned income to determine their EITC if their 2019 earned income is more than their 2020 earned income.
If you, or someone you know, might be eligible for EITC, visit the EITC Assistant on IRS.gov.