Tax Season is here!

Read below to find resources for filing taxes this year.

Don’t leave your money on the table and walk away!

Imagine being given three months of free rent, or $3,000 to put towards your child’s education savings, or having your utilities covered for the year! You would jump at the opportunity, right? Especially if you are living paycheck to paycheck - making hard choices every month and stressing about whether there will be enough food or money for health care costs and other basic needs for your family. Yet every year I hear about working households who have left money on the table that they were eligible for through the Earned Income Tax Credit (EITC). These same households may also pay fees to have their taxes done, not realizing there is a free service available to them in their community. 

About 5 million potentially eligible taxpayers do not claim the EITC each year, resulting in about $7 billion in unclaimed benefits annually, according to a report by the Treasury Inspector General for Tax Administration.[1] Are you one of them?

Why do so many miss this opportunity? Many low-income individuals are not required to file a federal tax return because their income is below the filing threshold, so they fail to realize there is a credit. Others are just unaware they qualify for refundable tax credits or for free tax preparation services.

According to the IRS, those who fail to claim their EITC are more likely people who are:

If your income matches the chart below, I recommend you take three steps to claim the income waiting for you and resources that will help you realize your financial goals once those dollars are returned to you.

Step One:  Sign up on www.prosperikey.org. There you can find a local VITA (volunteer income tax assistance) site near you either in the Finance category, or by selecting the 211 category. Make an appointment, bring your required documents, and claim your refund! The average refund is over $3,000, and it doesn’t cost anything to get help filing.

Step Two: The wealthy have financial advisors, why shouldn’t you? Go to the Finance category and select TrustPlus. There is a free financial coach available to help you improve your credit score, assess your budget (including reducing debt and increasing savings) and realize your financial goals. TrustPlus offers services in English and Spanish.

Step Three: You will find additional resources on www.prosperikey.org  that assist working households living paycheck to paycheck or those living on a fixed income. There are discounts on products and services, financial tools, access to quality childcare, affordable food, and more. Simply become a Key Member through an easy income verification process and find local and national opportunities that make life easier.

Make 2022 the year that you realize your financial goals and tap into all the resources that that are out there for you. You work hard, you deserve it!

To qualify for the EITC, you must:

If you're unsure if you qualify for the EITC, use the IRS Qualification Assistant.

After you file your return, use Where's My Refund? or the IRS2Go mobile app to track your refund.

Other Credits You May Qualify For

If you qualify for the EITC, you may also qualify for other tax credits.

[1] https://www.taxpolicycenter.org/briefing-book/do-all-people-eligible-eitc-participate    

[2] https://www.eitc.irs.gov    

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