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Tuesday, February 18, 2020

IDOR: Reminds Taxpayers to take advantage of EITC Tax Credit

Business

By Press release submission | Feb 7, 2020

Taxes

Illinois Department of Revenue issued the following announcement on Jan. 31.

With today marking the 14th annual federal EITC Awareness Day, Illinois Department of Revenue acting Director David Harris is reminding taxpayers to take advantage of valuable tax credits available like the Federal Earned Income Tax Credit ("EITC") and its Illinois counterpart, the Illinois Earned Income Credit ("EIC"). The EITC and EIC are powerful tools that reward low- and moderate-income taxpayers for their hard work, yet thousands of eligible taxpayers fail to claim this credit on their taxes.

"The state EIC and federal EITC put thousands of dollars in the pockets of hard-working families every year," said acting Director David Harris. "A family's eligibility can change year to year, so I urge all working families to check their status. Taxpayers should also note that they must claim both the state and federal components if they wish to maximize these valuable credits."

Anyone eligible for the federal EITC automatically qualifies for the Illinois EIC, which is a refundable tax credit worth up to 18 percent of a taxpayer's federal claim. Despite that, nearly 20,000 Illinoisans claimed a federal EITC credit without also claiming the state EIC, leaving over $5 million dollars unclaimed. The federal government estimates only four of five eligible taxpayers claim the federal EITC each year.

To be eligible for EIC/EITC, taxpayers must meet certain income and residency qualifications and file a tax return, even if they do not owe any tax or are not required to file. The Internal Revenue Service recommends that all workers who earned around $55,952 or less learn about EITC eligibility and use the EITC Assistant to find out if they qualify. Taxpayers must be eligible for federal EITC to receive the state EIC.

Federally, eligible families with three or more qualifying children could get a maximum credit of up to $6,557. EITC for people without children could mean up to $529 added to their tax refund. To find out if your family qualifies for the credit, click here.

Original source can be found here.

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