Now that tax season has here, it’s time to fulfill your civic obligation and begin submitting your income taxes to the IRS on behalf of the federal government.
It is crucial to keep in mind that you might not owe as much tax as you believe, even though tax season can frequently be a period of increased concern for filers, particularly if it is your first time filing.
Your total amount payable to the IRS may be greatly decreased if you are eligible for tax credits.
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The process of filing taxes is simple for the majority of Americans. You usually only need to file a W-2 form if you are an employee. A W-2 form, which serves as evidence of your income, must be submitted on your behalf by your employer.
But when it comes to paying your taxes, these documents are just one aspect of the larger issue. Even if you are not eligible to pay taxes, you still need to turn in a copy of the form.
This is due to the fact that in order to demonstrate whatever tax credits you are eligible for, you must provide documentation of your income when filing your taxes with the IRS.
Even though it requires more work to file for tax credits, if you know what you qualify for and do your homework, you can save thousands of dollars.
There are other tax credits for which you may be eligible, even though the majority, like the Child Tax Credit, are pretty well-known.
This is because the income limits for tax credits typically fall into similar groups because they are typically designed to assist filers with low and middle incomes.
Submit an Earned Income Tax Credit application
You can apply for the Earned Income Tax Credit as March approaches and the tax filing deadline draws near.
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Since one in five taxpayers do not claim this benefit, it is frequently disregarded in comparison to other credits. You must fulfill the following requirements in order to be eligible:
Your income cannot be more than the following amounts if you are filing as a widower, head of household, or single person:
| Number of Children | Income Limit (USD) |
| No qualifying children | $19,104 |
| One child | $50,434 |
| Two children | $57,310 |
| Three or more children | $61,555 |
Your income as a married couple filing jointly cannot be more than:
| Number of Children | Income Limit (USD) |
| No qualifying children | $26,214 |
| One child | $57,554 |
| Two children | $64,430 |
| Three or more children | $68,675 |
The number of children you have determines how much credit you can recoup:
| Family Type | Payment (USD) |
| A family without qualified children | $649 |
| If you have 1 qualifying child | $4,328 |
| If you have 2 qualified children | $7,152 |
| If you have three or more qualifying children | $8,046 |
By this date, submit your taxes
You have until April 15 to file your taxes. You can, however, apply for the Earned Income Tax Credit from previous years for a maximum of three years.
Accordingly, you technically only have until April 15 of this year to submit your Earned Income Tax Credit application for 2021.
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If you haven’t already, you should file for the previous year’s one to expedite the process. Another option is to request an extension for the deadline of April 15.
If you have any questions about filing your taxes or claiming any credits you might be qualified for, always get advice from a tax expert.
Additionally, the IRS offers free tax preparation provided you fulfill the following requirements:
- Make $67,000 or less.
- possess a disability
- Language assistance is required.
- are at least 60 years old.
The IRS website, which offers comprehensive tools and instructions on how to file taxes, is open to filers, nevertheless. Additionally, you can use their web tool “Where’s my Refund?” to track the status of your tax return.
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