MADISON— Workers may get a larger tax refund this year because of the Earned Income Tax Credit (EITC), but they must file a tax return to claim it. Department of Revenue Secretary Peter Barca noted the importance of EITC to Wisconsin families. “We have worked hard over the past few years to help bring attention to EITC and encourage those who qualify to file for it. This is money people can use for groceries, rent, utilities and other bills, said Barca.”
January 27, 2023, marks the 17th anniversary of Earned Income Tax Credit Awareness Day, a nationwide effort to increase awareness about EITC and free tax preparation sites.
As of December 2022, approximately 31 million taxpayers nationwide received over $64 billion in EITCs. Wisconsin’s share of this is $869 million averaging $1,886 per return.
Anyone who earned less than $59,187 in 2022 should see if they are eligible for EITC. It can mean up to a $6,935 refund when a return is filed with qualifying children. Workers without a qualifying child could be eligible for a smaller credit up to $560. According to the IRS, the average amount credited for 2022 was $2,043.
One-third of the EITC population changes each year, and the IRS estimates four out of five workers claim the EITC they earned. This leaves billions of dollars on the table each year, which is what makes it so important to get word out to those who are eligible to file a tax return, even if they don’t owe any tax to claim the EITC.
EITC varies by income, family size and filing status. Eligibility requires earned income or certain disability income, meaning the taxpayer must have income from working for someone or themselves.
Free Tax Assistance
IRS trained volunteers ask the needed questions to find out who qualifies for the EITC and other refundable tax credits. They also prepare and electronically file tax returns at no cost to eligible taxpayers. Find out more about eligibility requirements and locations at www.revenue.wi.gov and type VITA in the search box.
Bring the following:
· A valid driver’s license or other photo id card
· Social Security cards, a Social Security number verification letter for all persons listed on the return
· Birth dates for all persons listed on return
· All income statements: Forms W-2 and 1099, Social Security, unemployment, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld
· All records of expenses, such as tuition, mortgage interest, or real estate taxes
· Copies of last year’s state and federal tax returns, if one was filed
· Bank routing numbers and account numbers to direct deposit any refund
· Dependent childcare information: name and address of who you paid and either the caretaker’s SSN or other tax identification number
· If purchased coverage through Health Insurance Marketplace, Form 1095-A, Health Insurance Marketplace Statement
· Both spouses to sign forms to e-file a joint tax return