In the United States, tax season is upon us! This year get more of your money back with the EITC – Earned Income Tax Credit. Today is National EITC Awareness Day!
Have you heard of National EITC Awareness Day? The IRS along with many partners, such as Stockton Economic Empowerment Demonstration (SEED), are spreading awareness about the EITC – Earned Income Tax Credit – on Friday, January 31, 2020 in a national effort to reach potentially eligible taxpayers at a time when most people are filing or getting ready to file their federal income tax returns.
Share the news today! #TweetThis! National EITC Awareness Day spreads awareness of this valuable tax credit for working families. #NationalEITCAwarenessDay #EITC #TaxSeason #howshedoesitTweet
Did you know there is a Federal EITC, a California EITC, and a Young Child Tax Credit? Here’s how these tax credits can help families in Stockton, California.
A recent study, The Report on the Status of Women in Stockton, showed that 35.4% of Stockton’s families earn less than $50,000 annually. In order to claim the Federal EITC, a family’s annual income must be less than $55,952. That means, at least 1/3 of Stockton’s families are potentially eligible to claim this credit! In order to claim the California EITC, a family’s annual income must be less than $30,000. That means, at least 12% of Stockton’s families are potentially eligible for this additional EITC! In order to claim the Young Child Tax Credit a family claiming the California EITC must have at least one child under 6 years old. Use this easy tool, CalEITC4Me Calculator, to estimate your refund.
Think you won’t qualify an EITC because you don’t have a child? Think again! If you are between 25 -65 years old and meet these other requirements you too could qualify for something!
What will you do with your refund?
TurboTax shares 12 Smart Things To Do With Your Tax Refund. I’ve done several of these things with our refund over the years. According to GoBankingRates, about a 1/3 of Americans plan to use their refund to pay off debt. What do you plan to do with your refund?
Tax season isn’t always exciting …
Getting something back after filing taxes can be the highlight of the year. But it isn’t always this way. Many of us grow up with uncertainty around filing taxes, whether we’ll get a refund, or have to pay taxes. We turn over our financial information to someone and, I know I’m not the first to admit this, truly hope for the best. We’ve all felt this way at one time or another.
It’s time to STOP feeling afraid of filing taxes!! Would you be interested in a city-wide tax prep day? This would be a day for Stocktonians to share in the struggles (and maybe share the joys too, who knows?!) of preparing to file our taxes and help each other get the most of our refunds. I’m looking forward to the Stockton Economic Empowerment Demonstration partnership with Stockton Mayor’s Office to host this city-wide event. As soon as I learn the details, I’ll share the news!
EITC Points to Remember!
● The Earned Income Tax Credit is a tax credit that puts money back in the pockets of workers.
● In order to claim the EITC, you must file your tax returns.
● Both the federal and California EITCs have eligibility requirements dependent on income.
○ If individuals made less than $30,000 last year, they may be eligible to claim the CA credit.
● Those who claim the EITC can receive up to $2,900 from CalEITC and up to $6,500 from the federal credit (actual credit amounts depend on income and family size).
● Previous tax returns can be amended to retroactively claim the EITC up to three years prior.