Wash. D.C. IR-2017-11
The IRS urges Native American taxpayers to look into the Earned Income Tax Credit and correctly claim it if they qualify. EITC and the Child Tax Credit greatly reduce poverty for working families. The EITC is federal income tax credit for working people who don’t earn a lot ($53,505) or less and meet certain eligibility requirements. Because it’s a refundable credit, those who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund. EITC can mean up to a $6,269 refund for working families with qualifying children. Workers without a qualifying child could be eligible for a similar credit up to $500. On average, EITC adds $2400 to refunds.
The IRS has identified American Indian communities as a group of workers at risk for overlooking this important credit. To qualify for EITC, the taxpayer must meet certain basic rules and have earned income from employment, being self employed or running a business. There are many reasons qualified individuals and families do not claim the EITC. They may think they are ineligible, not know about the credit or worry about paying for tax preparation services. To get the credit, individuals must file a tax return, even if they do not owe any tax.
Many EITC filers will get their refunds later this year than in past years, due to the effort by the IRS to identify identity theft refund fraud. The IRS cautions taxpayers that these refunds likely will not start arriving in bank accounts or on debit cards until the week of February 27th.
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