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IR-2023-16, January 27, 2023

WASHINGTON – The Internal Revenue Service and partners nationwide today kicked off their Earned Income Tax Credit Awareness Day outreach campaign to help millions of Americans who earned $59,187 or less last year take advantage of the Earned Income Tax Credit (EITC).

"This is an extremely important tax credit that helps millions of hard-working people every year," said IRS Acting Commissioner Doug O'Donnell. "But each year, many people miss out on the credit because they don't know about it or don't realize they're eligible. In particular, people who have experienced a major life change in the past year – in their job, marital status, a new child or other factors – may qualify for the first time. The IRS urges people to carefully to review this important credit; we don't want people to miss out."

In 2022, 31 million eligible workers and families across the country received about $64 billion in Earned Income Tax Credits, with an average amount of more than $2,000.

The IRS administers the EITC, which Congress originally approved in 1975. It was developed in part to offset the burden of Social Security taxes and provide an incentive to work.

The IRS and partners urge people to check to see if they qualify for this important credit. They also encourage people who don't normally file a tax return to review whether they qualify for EITC and other valuable credits.

The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund. Even though millions of people get the EITC, the IRS estimates that about 20% of EITC eligible taxpayers do not claim it.

Workers at risk for overlooking the EITC include those:

• Living in non-traditional homes, such as a grandparent raising a grandchild
• Whose earnings declined or whose marital or parental status changed
• Without children
• With limited English skills
• Who are veterans
• Living in rural areas
• Who are Native Americans
• With earnings below the filing requirement

The IRS also reminds taxpayers that the quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund. Tax software, tax professionals and other free options can help people see if they qualify for the EITC.

Who can get the EITC?

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. There's no need to guess about EITC eligibility; find out with the EITC Assistant.

Workers with qualifying children may be eligible for EITC if their adjusted gross income (AGI) was less than $53,057 in 2022 ($59,187 for married filing jointly). These individuals can receive a maximum of $6,935 in EITC, up from $6,728 in 2021.

The maximum EITC for taxpayers with no dependents is $560, available to filers with an AGI below $16,480 in 2022 ($22,610 for married filing jointly), and it can be claimed by eligible workers between the ages of 25 and 64. Married but separated spouses who do not file a joint return may qualify to claim EITC if they meet certain requirements.

EITC is for workers whose income does not exceed the following limits in 2022:

• $53,057 ($59,187 married filing jointly) with three or more qualifying children who have valid Social Security numbers (SSNs).
• $49,399 ($55,529 married filing jointly) with two qualifying children who have valid SSNs.
• $43,492 ($49,622 married filing jointly) with one qualifying child who have valid SSNs.
• $16,480 ($22,610 married filing jointly) with no qualifying children who have valid SSNs.
• Investment income must be $10,300 or less.

How to claim the EITC

To get the EITC, workers must file a tax return and claim the credit. Eligible taxpayers should claim the credit even if their earnings were below the income requirement to file a tax return. Free tax preparation help is available online and through volunteer organizations.

Those eligible for the EITC have these options:

• Free File on IRS.gov. Free brand-name tax software is available that leads taxpayers through a question-and-answer format to help prepare the tax return and claim credits and deductions if they're eligible. Free File also provides online versions of IRS paper forms, an option called Free File Fillable Forms, best suited for taxpayers comfortable preparing their own returns.

• Free tax preparation sites. EITC-eligible workers can seek free tax preparation at thousands of Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest site, use Find a Location for Free Tax Help on IRS.gov, the IRS2Go smartphone application, or call toll-free 800-906-9887. Taxpayers should bring all required documents and information.

• Find a trusted tax professional. The IRS reminds taxpayers that a trusted tax professional can prepare their tax return and provide helpful information and advice. Tips for choosing a return preparer, including certified public accountants, enrolled agents, attorneys and many others who don't have a professional credential, and details about national tax professional groups are available on IRS.gov. EITC recipients should watch out for unscrupulous return preparers.

The IRS reminds taxpayers to be sure they have valid Social Security numbers for themselves, their spouse if filing a joint return and for each qualifying child claimed for the EITC. The SSNs must be issued before the April due date of the return. There are special rules for those in the military or those out of the country.

Most EITC refunds deposited by late February

While the IRS began accepting 2022 returns on January 23, 2023, the IRS cannot issue a refund that includes the Earned Income Tax Credit or Additional Child Tax Credit (ACTC) before mid-February. This is due to the 2015 PATH Act law passed by Congress, which provides this additional time to help the IRS stop fraudulent refunds from being issued.

Where's My Refund? should show an updated status by February 18 for most early EITC/ACTC filers. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by February 28 if taxpayers chose direct deposit and there are no other issues with their tax return.

Get it right

Taxpayers are responsible for the accuracy of their tax return even if someone else prepares it for them. Since the rules for claiming the EITC can be complex, the IRS urges taxpayers to understand all of them.

Look out for scams

Be sure to choose a tax preparer wisely. Beware of scams that claim to increase the EITC refund. Scams that create fictitious qualifying children or inflate income levels to get the maximum EITC could leave taxpayers with a penalty.

Visit IRS online to learn about other tax credits

IRS.gov is a valuable first stop to help taxpayers get it right this filing season. They can check to see if they also qualify for the Child Tax Credit, Additional Child Tax Credit or Credit for Other Dependents.

Related items

• EITC Central, helpful resources for IRS partners and others
• Publication 596, Earned Income Credit (EIC)
• Tax Professionals, another place for valuable EITC resources and assistance

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IR-2023-11, January 23, 2023

WASHINGTON — The Internal Revenue Service kicked off the 2023 tax filing season with a focus on improving service and a reminder to taxpayers to file electronically with direct deposit to speed refunds and avoid delays.

Following a successful opening of its systems today, the IRS is now accepting and processing 2022 tax returns. Most of the individual tax returns for the 2022 tax year are expected to be filed before the April 18 tax deadline.

Taxpayers have until April 18 to file their taxes this year, but some taxpayers living overseas and disaster victims may have later filing deadlines. Alabama, California and Georgia storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments.

"Following months of hard work, we successfully opened our processing systems today to start this year's tax season," said IRS Acting Commissioner Doug O'Donnell. "Getting to this point is a monumental effort not only for the IRS but also for the nation's tax community. The hard-working employees of the IRS look forward to serving taxpayers this filing season, and I personally want to thank them, and all of the tax and payroll community for their dedication to making tax time smoother for the nation."

O'Donnell also noted that taxpayers can count on IRS delivering improved service this filing season. As part of the August passage of the Inflation Reduction Act, the IRS has more than 5,000 new telephone assistors and added more in-person staff to help taxpayers.

"We continue to increase IRS staffing to help provide taxpayers with the information and assistance they need," said O'Donnell. "The IRS reminds taxpayers to take some important steps when filing their tax returns for a smoother process. They should gather their necessary tax records, file an accurate return electronically and choose direct deposit to get their refunds faster."

Taxpayers who electronically file a tax return with no issues and choose direct deposit should still receive their refund within 21 days of the date they file – similar to previous years. Due to tax law changes such as the elimination of the Advance Child Tax Credit and no Recovery Rebate Credit this year to claim pandemic-related stimulus payments, many taxpayers may find their refunds somewhat lower this year.

IRS tips for a smooth filing season

Fastest refunds by e-filing, avoiding paper returns: To avoid refund delays, IRS encourages taxpayers to file their tax return electronically with direct deposit instead of submitting a paper tax return. Taxpayers may use IRS Free File on IRS.gov, other tax software or a trusted tax professional. Members of the armed forces and qualifying veterans can file their federal tax return and up to three state tax returns for free electronically using MilTax, a Department of Defense program.

Avoid delays; file an accurate tax return: Taxpayers should make sure they're ready to file an accurate and complete tax return. This can help avoid processing delays, extensive refund delays and later IRS notices.

Earned Income Tax Credit or Additional Child Tax Credit refunds: Taxpayers may file their returns beginning Jan. 23, but the IRS cannot issue refunds involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. The law provides the extra time to help the IRS prevent fraudulent refunds. "Where's My Refund?" on IRS.gov should show an updated status by Feb. 18 for most EITC and ACTC filers. The IRS expects most of these refunds to be available in taxpayer bank accounts or debit cards by Feb. 28 if people chose direct deposit and there are no other issues with their tax return.

Avoid phone delays; online resources best option for help: IRS.gov is the quickest and easiest option for help. IRS assisted phone lines continue to receive a high volume of calls. To avoid delays, check IRS.gov first for refund information and answers to tax questions. Setting up an Online Account on IRS.gov can also help taxpayers get information quickly. IRS Online Account was recently expanded to allow more people to gain access. The Interactive Tax Assistant can also help taxpayers get answers to many tax questions online at any time.

Online options for free help; answers to common questions: Use IRS.gov to get answers to tax questions, check a refund status or pay taxes. No wait time or appointment needed — online tools and resources are available 24 hours a day.

Other free options for help: IRS Free File is available to any person or family who earned $73,000 or less in 2022. For taxpayers who are comfortable completing their own tax forms, Free File Fillable Forms may be a good option. MilTax is a free tax resource available to the military community, and it's offered through the Department of Defense. Qualified taxpayers can also find free one-on-one tax preparation help nationwide through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

2021 tax returns still being processed: Taxpayers can check Where's My Amended Return? to find out the status of their tax year 2021 Form 1040-X and can still file their 2022 tax returns even if their 2021 tax returns haven't been processed. Visit the IRS Operations page for more information on what to expect.

April 18 tax deadline: This year, the filing deadline is April 18 for most taxpayers, but automatic six-month extensions of time to file are available for anyone for free. See Extension of Time to File Your Tax Returnfor instructions. Taxpayers should be aware that filing Form 4868 only extends the time to file tax returns. Those who owe taxes should still pay by April 18 to avoid late payment penalties.

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