It’s almost tax time again, and you may not want to leave money on the table. Residents of Austin and other nearby areas of Texas may want to learn about recent changes to the tax law for 2022. These changes will make more Americans eligible for the Earned Income Tax Credit (EITC) when it comes time to do their taxes. The Internal Revenue Service recently announced that people without qualifying children may have entitlement to this break on their taxes.
According to WGN9, those who owe taxes may reduce what they owe. Others, who are getting a refund, may get a larger refund. Now, not only working families will be eligible for this credit; there is an expansion to include more lower-income workers that have no children.
New groups to qualify
Who are these new groups? Depending on their income, the following will now have eligibility for the EITC:
- Those who are at least 19 years with no qualifying children
- Those who are older than 64 years with no qualifying children
- Those 18 years old and formerly in foster care or experiencing homelessness
Before the changes, the previous qualification for this credit was to have no dependents and be between the age of 18 to 64. The IRS wants people to be aware of this credit and the changes to tax law that they made.
Check to see if you qualify
If you have taxes done for you by a preparer, be sure to have them check to see if you qualify. Other advice from the IRS is to check your pre-pandemic income levels in 2019; it may qualify you for a larger credit this year.
The IRS instituted some changes this year. New groups now have a qualification, and you may qualify for the EITC under the new rules. Category additions are part of the new changes. The IRS wants you to be aware of its changes. They say that the fastest way to get a refund is by filing accurately online. Choosing direct deposit will also save time and is a safe way to receive your refund.