The Internal Revenue Service is again trying to make sure everyone who is eligible for the Earned Income Tax Credit is taking advantage of it.
IRS spokeswoman Jodi Patterson says the tax credit is based on several factors.
“There are income limits, it depends on the number of children to determine how much you will get,” Patterson says. “I would encourage anyone who makes $53,000 or less to go to www.irs.gov. We have a calculator called the EITC Assistant that will help everybody determine whether or not they are eligible for this credit.”
The EITC provided more than $66-billion to almost 28-million households last year, but Patterson says there were still those who missed out.
“Every year, a third of the population of those who are eligible move in and out, people get different jobs, they lose their jobs, and so a lot of people are not aware of it. They will eligible for the first time,” Patterson says. “Four out of five people do claim the credit, but that means 20% of the people aren’t getting it.”
Many Nebraskans do take advantage of the credit. About 136,000 Nebraska taxpayers claimed the EITC in 2014 for a total of $310-million.
The average credit paid in 2013 was $2,400 dollars and for the 2014 tax year, the credit could be as much as $6,143 dollars for a family with three or more children.
Patterson says often, people qualify but they don’t make enough money to even be required to file a tax return, so they don’t know they are eligible — and you have to file a tax return in order to get it. She says you don’t have to spend anything to file for the benefit as the agency offers a Free File program on its website.