Jan. 29, 2021 (Racine, WI) — United Way of Racine County is raising awareness about the Earned Income Tax Credit (EITC), which could allow many workers to get a larger tax refund this year.
Jan. 29, 2021 marks the 15th anniversary of EITC Awareness Day, a nationwide effort to increase awareness about the EITC and other refundable credits. This year, the Internal Revenue Service (IRS) is promoting the EITC and providing information on other refundable tax credits that taxpayers may be eligible for. These include the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), the Credit for Other Dependents (ODC) and/or the American Opportunity Tax Credit (AOTC).
Racine County residents with incomes of less than $56,844 may qualify for the EITC, which can provide a credit of anywhere from $538 to $6,660. According to the IRS, the average amount credited for 2020 was $2,461. In Wisconsin, 349,000 taxpayers were able to claim a total of $787 million through the EITC in 2020.
Why is it important to have an EITC Awareness Day each year? One-third of the EITC population changes each year. The IRS estimates only four out of five eligible workers claim the EITC each year, leaving billions of dollars on the table. United Way of Racine County wants to get the word out to those who are eligible to file a tax return, even if they don’t owe any taxes, to claim the EITC.
The EITC is complex. It varies by income, family size and filling status. To be eligible, taxpayers must have earned income or certain disability income. This means they must have income from working for someone or working for themselves.
Taxpayers can learn if they’re eligible using the EITC Assistant; it’s available in both English and Spanish. The assistant helps taxpayers:
- find filing status,
- determine if there is a qualifying child or children,
- verify eligibility for EITC, and
- estimate the amount of credit.
Visit UnitedWayRacine.org/VITA to find a link to the assistant, or work with a volunteer from United Way of Racine County’s Volunteer Income Tax Assistance (VITA) program to learn more. This year, VITA will be completely virtual and will open for free preparation and filing of tax returns on Jan. 25. Low-to-moderate income participants can submit their tax documents by smart phone, computer or tablet through a secure, online portal, where the documents will then be reviewed and filed by IRS-certified VITA volunteers.
“Despite the challenges of the pandemic, we are thrilled to be able to safely continue offering free tax services to Racine County,” said Initiatives Manager Lori Riffer. “The money saved can help families with everything from groceries to rent and other necessities.”
Learn more about VITA and the EITC at: UnitedWayRacine.org/VITA
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