The IRS is making changes to their Earned Income Tax Credit.
For 2021 only, more childless workers and couples can qualify for the EITC, and the maximum credit is nearly tripled for these taxpayers. For the first time, the credit is now available to both younger workers and senior citizens.
Also for 2021, the EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. There is no upper age limit for claiming the credit.
Another change is filers can use their 2019 earned income if it was higher than their 2021 earned income. People must have earned income through employment or other sources. This option may help workers get a larger credit if they earned less in 2021 or received unemployment income instead of their regular wages.
The amount of the credit has been increased and the phase-out income limits where taxpayers can claim the credit have been expanded. The maximum EITC for a married couple filing jointly with three or more children is $6,728 and the upper-income level for that same family is $57,414.
Workers who can claim the EITC include:
Without children, including those workers who are at least 19 years old and older than 64
Living in non-traditional families, such as a grandparent raising a grandchild
Whose earnings declined or whose marital or parental status changed
With limited English language skills
Who are members of the armed forces
Living in rural areas
Who are Native Americans
With disabilities or who provide care for a disabled dependent
One way people in the Lincoln are can ensure they get the credit is by using a Volunteer Income Tax Assistance site nearby. They can sit down with someone face-to-face, or work virtually, to have their return prepared and e-filed for free.
To schedule an appointment, send an email to: vita@unl.edu.
The Lincoln VITA Coalition sites:
UNL Tax Credit Campaign, 1705 Arbor Drive,
UNL-F Street Community Center, 1225 F St
UNL – Good Neighbor Center, 2617 Y Street
UNL-Southeast Community College, 8800 O St #T-102
UNL-Indian Center, 1100 Military Rd
UNL-Center for People in Need, 3901 N 27th, Unit 1
UNL-Victor E. Anderson Library, 3635 Touzalin Avenue
UNL-Loren C. Eiseley Library, 1530 Superior Street
UNL-Veterans Administration of NE and Western Iowa, 1705 Arbor Dr.
UNL-Bennett Martin Library, 136 S. 14th Street
UNL-Asian Community and Cultural Center, 144 N 44th St., Ste A
UNL- Outreach, 1400 R St. (Virtual Preparation by appt.)
Lincoln-FSA, 1400 R St (Self-Prepared, On-line)
EITC Awareness Day was January 28th.