MILLIONS of people living in the United States might possibly qualify for tax credits worth thousands of dollars each.
Approximately two million military households are eligible for either the Earned Income Tax Credit or the Child Tax Credit, or both, according to the conclusions of a study done by the Center on Budget and Policy Priorities.
According to Karyn Campbell, senior general manager of Jackson Hewitt Tax Service, who spoke with KWTX, one out of every four military families are eligible for the earned income credit and/or child tax credits. “For the earned income credit, they could actually qualify for almost $7,000,” Campbell said. KWTX is a news outlet located in central Texas.
It is important to keep in mind, however, that the ETIC is designed to help taxpayers with low incomes in general and is not reserved solely for military families.
Who Is Qualified To Apply?
According to the information provided by the IRS, in order to qualify, your annual income must be less than $57,414 for you to be considered.
And for the year 2020, the government estimated that around 60 billion dollars worth of ETIC benefits were distributed to 25 million workers.
If a single parent’s annual income is less than $200,000 in 2022, they may be eligible for the maximum Child Tax Credit of up to $2,000 per child.
In order to maintain their standard of living financially throughout the epidemic, a significant number of Americans got funds from the stimulus package. The Internal Revenue Service (IRS) depended on tax returns to determine whether individuals qualified for payments and where those payments should be sent; nevertheless, the IRS reported that millions of American citizens did not receive these payments.
These letters are quite similar to the ones that were given out in September 2020, which encouraged those who had not previously filed tax returns to do so in order to become eligible for the first stimulus payment, which was formally referred to as the Economic Impact Payment.
If a married couple’s joint annual income is less than $400,000, they are eligible to claim the entire credit.
The amount is different from what it was in 2021 due to the fact that the temporary boost of $3,600 in tax credit was no longer available.
Filing tax returns is required in order to make a claim for tax benefits.
However, you won’t be able to make a claim for the tax credits for 2022 until the beginning of 2023.
In the meanwhile, there is a resource available for families with modest incomes until the 15th of November.
People who are qualified can use the tool to claim not only the maximum EITC and CTC benefits of $3,600 each but also the third federal stimulus check and the CTC.
The use of the portal is completely free, and no financial documentation is required.
Additional tax breaks for families of service members
There are certain states that provide veterans and their families with additional tax benefits.
Veterans who served 20 years or more in the military or who were medically discharged in North Carolina are exempt from paying state income tax on their military pensions.
In the state of New Mexico, veterans who have been disabled as a result of their service are eligible for a full exemption from the property tax.
And in the state of Iowa, veterans who served for at least 18 months during peacetime or during wartime receive a $1,852 reduction in the value of their home, which results in a decreased property tax payment.
More recent headlines on tax rebates
In other news, the promised tax reimbursement of up to $1,050 that was made to millions of residents of California has not yet been delivered.
By the 14th of November, the second wave of rebates through direct deposit should have been deposited into bank accounts.
Those who were given the Golden State Stimulus in the form of a prepaid debit card may have to wait until December 1 in order to acquire another prepaid debit card that contains this refund.
By the 15th of January in 2023, all payments must have been completed.