IRS revises FAQs for Tax Year 2021 Earned Income Tax Credit

WASHINGTON — The Internal Revenue Service today revised frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit (FS-2022-30) to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return.

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has children, dependents, are disabled or meet other criteria.

These FAQ’s detail what the EITC is, how it was expanded for 2021, which taxpayers are eligible, and how to claim it.

Question 15, “Can I elect to use my 2019 earned income to figure my Earned Income Tax Credit for 2021?” was revised.

File for free and use direct deposit

Taxpayers with income is $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.

More information about reliance is available.