You work hard, so why not take some credit for it?
The Earned Income Tax Credit is one of the most overlooked tax credits around, according to many experts. But it is also one of the more generous.
The IRS estimates that 26 million people received about $65.6 billion under this tax credit last year. The average amount received was more than $2,400 but it can be worth more than $6,000. Yet one out of five workers who are eligible do not take advantage of it.
“It’s huge. It can help people out of poverty,” said Lisa Greene-Lewis, a CPA at TurboTax. “People are surprised by how big it is.”
The reasons for missing out vary. The rules surrounding it are complex, people may not know to apply for it and eligibility may change year by year. The IRS suggests that anyone earning less than $54,000 a year look into their eligibility each tax season.