Tax season can be both exciting and stressful. While many people eagerly look forward to receiving their tax refund, some low-income Americans may find themselves feeling overwhelmed and confused by the tax system. But don’t worry! This post will provide helpful tips on how to get the most out of your tax return.
Take Advantage of Earned Income Tax Credit (EITC)
The EITC is a federal income tax credit available to low-income workers. It’s designed to help offset the impact of payroll taxes and other costs associated with working. The EITC has been around since 1975, but it was significantly expanded in 2009 under President Obama’s Recovery Act. The amount you can receive depends on your adjusted gross income, filing status, and number of dependents you have. If you qualify for the EITC, it could mean hundreds or even thousands of dollars back in your pocket. To find out if you qualify for the credit—and how much you can receive—use the IRS’s EITC Assistant tool.
Claim Credits for Dependents
If you have children or dependents that live with you at least half of the year, you may be able to claim them as dependents on your taxes. You can receive up to $500 per dependent in additional credits if they meet certain criteria such as being younger than 19 or 24 depending on whether they are full-time students or not. Additionally, there are special credits available if they are disabled or living with disabilities such as autism or blindness. Be sure to do your research so that you can take full advantage of any credits applicable to your situation!
Utilize Free Tax Services
Don’t let financial worries keep you from getting the most out of your tax return! There are a variety of free online services and software programs that make it easier than ever to file taxes accurately and efficiently without having to pay an expensive fee. Some options include TurboTax Free Edition, H&R Block Free File Program and MyFreeTaxes powered by United Way Worldwide & H&R Block which offers free state and federal filing for qualified taxpayers who earned less than $66,000 in 2020.. You can also contact non-profit organizations such as United Way or Goodwill Industries International Inc., which offer free tax preparation services for eligible taxpayers in select areas throughout the country (check their websites for more information).
Filing taxes doesn’t have to be complicated or expensive! By taking advantage of all available credits, utilizing free resources like online filing tools and non-profit organizations offering assistance, low-income Americans can maximize their tax returns and benefit from all that this money has to offer! With a little bit of research and planning ahead of time, anyone can make filing taxes a breeze this year!
