GREENSBORO, N.C. — The IRS is now processing tax returns and this year, you could be eligible for a tax credit that could reduce the amount of taxes you owe and give you a bigger refund!
The Earned Income Tax Credit (EITC) is temporary relief provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020. The EITC helps low to moderate-income workers and families get a tax break. Claiming this credit can reduce the tax you owe and may give you that larger refund.
“Because of unemployment and people being laid off their earned income credit and child tax credit has been affected so the IRS has allowed them to either take 2019 adjusted gross income or 2020 whichever helps them with those credits more,” said Renee Roberts, Fax Tax of Inglewood.
The easiest way to see if you can get this credit is to use the EITC Assistant on the IRS page. It’s very user-friendly and asks you questions you'll be able to answer off the top of your head and then some you'll need a few documents for, like a W2 or 1099.
This year, the IRS is emphasizing e-filing. The webpage says:
The IRS cautioned paper-filed tax returns and paper checks will take even longer this year due to a variety of reasons. Taxpayers have until Thursday, April 15, 2021, to file their 2020 tax return and pay any tax owed. The IRS expects to receive more than 160 million individual tax returns this year with nine out of 10 returns filed electronically. At least eight out of 10 taxpayers get their refunds by using direct deposit.
E-filing is free! The IRS partnered with several software companies to offer you nine options of free e-filing.