Hurry – time is running out to claim your credits on your 2021 federal income tax return using the IRS’s Free File! The Taxpayer Advocate Service (TAS) wants to educate individuals about claiming the Recovery Rebate Credit, the Child Tax Credit, or the Earned Income Tax Credit, and the upcoming deadline for using IRS Free File. You may be eligible to receive the full amount of these credits, even if you have little or no income, or are not usually required to file a federal income tax return. IRS Free File allows you to electronically prepare and file your federal income tax return for free using software at an IRS partner site or fillable forms.

What are the criteria for these credits?

Recovery Rebate Credit

• For stimulus payment amounts you did not receive in 2021
• S. citizen or resident alien
• Must have Social Security number (SSN) valid for employment
• Worth up to:

• $1,400 per eligible adult plus
• $1,400 per qualifying dependent

• See Understanding Your Letter 6475 for more information.

Child Tax Credit

• Up to $3,600 for each qualifying child ages 5 and under at the end of 2021
• Up to $3,000 for each qualifying child ages 6 through 17 at the end of 2021
• Each qualifying child must have an SSN valid for employment
• You may have received up to half of this amount through monthly payments in 2021. You must file a tax return to receive the rest. See Letter 6419 for more information.

Earned Income Tax Credit

• Helps low and moderate-income workers and families
• Based on your wages and income from self-employment
• S. citizen or resident alien
• Must have an SSN valid for employment
• Worth up to:

• $1,502 with no qualifying children
• $3,618 with 1 qualifying child
• $5,980 with 2 qualifying children
• $6,728 with 3+ qualifying children

Earned Income Tax Credit

The fastest and most secure way to receive your refund is by electronically filing your return and having any refund direct deposited. The deadline to use the IRS’s Free File will close at midnight, Eastern Time, on November 17, 2022.

Here are some other tips to help you prepare to file your 2021 federal income tax return:

What you need to gather to file

• SSNs or Individual Taxpayer Identification Numbers for yourself and anyone else listed on your tax return.
• Wage and income information (collect any W-2s or 1099s you have received). You can order copies of wage and income statements online after creating an Online Account.

• Bank account and routing number for direct deposit of a refund.

If you have any questions regarding accounting, domestic taxation, essential business accounting, international taxation, IRS representation, U.S. tax implications of Real Estate transactions or financial statements, please give us a call at +305-274-5811.

Source: TAS