Are you entitled to a substantial IRS refund?

The IRS estimates that about 1 in 5 people eligible for Earned Income Tax Credit never apply. This is very sad news, because those people could get back substantial refunds! Last year, over 26 million people received nearly $59 billion in EITC.So who exactly is getting all this money? Well, there are some special categories who can file for EITC, such as:

• members of the military
• members of the clergy
• people impacted by disasters
• individuals with disability benefits, or who have a child receiving disability benefits

However, these are just the special cases. In reality a lot more categories receive Earned Income Tax Credit, such as:

• Self-employed individuals
• People living in rural areas
• Recently divorced
• Grandparents raising their children
• Unemployed individuals or people who’ve experienced other changes to their marital, financial or parental status

Basicaly almost anyone who’s income fits into this table bellow can file for Earned Income Tax Credit:Number of Qualifying ChildrenFor Single/Head of Household or Qualifying Widow(er), Income Must be Less ThanFor Married Filing Jointly, Income Must be Less ThanRange of EITCNo Child$13,660$18,740$2 to $464One Child$36,052$41,132$9 to $3,094Two Children$40,964$46,044$10 to $5,112Three or More Children$43,998$49,078$11 to $5,751(sourceEITC.irs.gov)Take divorce for example. We all know how divorce can cause a financial mess. If you’re actually in financial distress due to your divorce proceedings, you might qualify for the Earned Income Tax Credit. And this is even if you don’t have a child. It basically means you might qualify to get a bigger tax refund. Maybe the Earned Income Tax Credit can draw a silver lining over this unfortunate event. I know it may not be what you were looking for, but it is a silver lining! Last year individuals eligible for EITC got on average of 2000$ back, with $3.62 billion offered in total, in New York city alone!How much do you really know about the taxes you pay? If you’re anything like most US citizens well... I bet taxes don’t really float your boat! Starting January 15 you can apply for the Earned Income Tax Credit.  If you’ve been in any financial distress the past year you might get even more of your money back. Not sure if you qualify? Email us at matilda@taxplangroup.com and we’ll shed some light on the matter.