A newly expanded tax credit program for low-income people means more Arkansans are eligible than ever, and advocacy groups hope to spread the word, so residents don’t miss out on the potential income boost.
Through temporary support from the American Rescue Plan, 19- to 24-year-olds and people 65 and older without children will qualify for the Earned Income Tax Credit (EITC) for the first time.
Workers without kids can receive up to $1,500 in tax breaks, reaching more than 173,000 Arkansans.
Bruno Showers, senior policy analyst at Arkansas Advocates for Children and Families, said it can help people pay for basic needs.
“A lot of people use the EITC to pay down debts, make sure they’re caught up on their bills, school supplies, so they can skill themselves up and obtain better employment,” Showers outlined. “It really just helps plug in these holes, where a lot of people are really struggling right now and the EITC helps them make it work.”
Eligibility requirements for the credit include earning money from a job or some disability benefits and making $27,000 or less without kids. Showers said residents can apply by April 18 for the EITC at GetYourRefund.org and receive help from an IRS-certified volunteer.
Workers with children are also eligible to receive the tax credit, just as in previous years, and can earn up to $6,700 dollars in credits. With the future of the Child Tax Credit in limbo, Showers said it is critical expansions to programs such as the EITC be made permanent.
“Even when there’s not a pandemic, it helps address child poverty, and also, it encourages work,” Showers pointed out. “The structure of the earned income tax credit is really designed to make it so that it incentivizes work while also helping people make ends meet, which is kind of a win-win to me.”
The income requirement for credit recipients with children is $57,000 or less. Residents can also receive help with the credit and filing taxes by visiting a local Volunteer Income Tax Assistance or AARP Tax-Aide site.
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