Don't Leave Money on The Table During Tax Time

You May Qualify for Federal Earned Income Credit And Not Know It

As you file 2020 taxes, you might leave thousands on the table if you don't know about the federal Earned Income Tax Credit.

Andy Moore, a community ambassador with OKC Tax Help, said the government and agencies like OKC Tax Help are promoting EITC because an estimated 20% - one out of five people who qualify for the EITC - don't claim it on their taxes. 

Even though roughly 30 million people are likely eligible to get some money from EITC, the IRS estimates 6 million taxpayers leave the credit unclaimed each year.

The EITC is a tax credit for individuals between 25-64 in households that earn $56,000 or less a year. And while thousands of working Oklahomans qualify for it, they aren’t claiming it. 

The average EITC credit per Oklahoma tax filer was $2,577 for the 2019 tax year, said Moore. The amount of the refund increases depending on the number of children and goes up to $6,000 for a qualifying household. 

“It seems people don't know that they're eligible for it or maybe they haven't filed their taxes because they don't think they would owe anything,” Moore said. “The eligibility is simple, actually. There are two things you have to have: earned income, so you have to be a working person and have a household income of $57,000 or less."

The maximum credits for 2021 are $543 for those with no qualifying children, $3,618 for those with one child, $5,980 if two children, and $6,728 for those with three or more children. Qualifying children include adopted or foster children, and others as long as they live in the household for more than half the year.

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