March 2, 2022<\/p>\n
WASHINGTON\u00a0\u2014\u00a0The Internal Revenue Service today issued frequently asked questions (FAQs) for the 2021 Earned Income Tax Credit<\/a> to educate eligible taxpayers on how to properly claim the credit when they prepare and file their 2021 tax return.<\/p>\n The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has children, dependents, are disabled or meet other criteria.<\/p>\n These FAQ\u2019s\u00a0detail what the EITC is, how it was expanded for 2021, which taxpayers are eligible, and how to claim it.<\/p>\n The 17 new FAQ\u2019s are:<\/p>\n <\/p>\n File for free and use direct deposit<\/strong><\/p>\n Taxpayers with income is $73,000 or less can file their federal tax returns electronically for free through the IRS Free File Program<\/a>. The fastest way to receive a tax refund is to file electronically and have it direct deposited into a financial account. Refunds can be directly deposited into bank accounts, prepaid debit cards or mobile apps as long as a routing and account number is provided.<\/p>\n <\/p>\n\n