January 26th is Earned Income Tax Awareness Day
Governor Jay Inslee proclaimed Jan. 26, 2018 as “Earned Income Tax Credit Awareness Day” in the state of Washington as part of a nationwide effort to spread the word about this under-used tax credit and provide information and resources to claim it.
“Together, the Earned Income Tax Credit and low-income Child Tax Credit (CTC) are among the strongest tools to promote work and help workers with children move out of poverty,” Inslee said. “It is important for Washingtonians to be aware of this opportunity because one in five eligible taxpayers do not claim or receive this benefit.”
Workers earning up to $53,930 may be eligible to receive the federal Earned Income Tax Credit (EITC). A tax return must be filed to get the credit, even if no tax is owed or filing a tax return is not required.
Did you know:
- The Earned Income Tax Credit (EITC) reduced or eliminates taxes that low-income working people pay and, if the credit exceeds the amount of taxes owed, a lump sum credit is paid to those who qualify.
- 426,000 Washington residents received $926 million in EITC refunds in 2017.
- EITC refunds help lift an average of 164,000 Washingtonians, including 81,000 children above the poverty level each year.
- The IRS estimates 20 percent of those eligible either do not claim the benefit on their taxes or do not file a tax return at all. Seniors, individuals with low incomes, and non-English speaking taxpayers account for much of the unclaimed credits because they don’t realize they are eligible. The credit reduces the amount of taxes owed and results in a lump sum refund payment for most people who are eligible to claim it.
- This year individuals can receive a tax refund of up to $6,444 if they meet eligibility requirements.