Courtney O’Reilly, director of Tax Help Colorado, a VITA participant who worked with Code for America in 2020, said that traditional VITA sites, even without a pandemic, may not always be suitable for working families . People may not be able to take time to visit their work and may have to wait in line.
“Free does not always mean accessible,” O’Reilly said.
Two years ago, the group began looking for ways to reach more families who are eligible for the tax credit, she said, finding the Get Your Refund platform useful.
Using the website or your mobile app Get Your Refund, files can verify their identity and upload tax documents and then talk to a volunteer who will prepare their return, all without meeting in person with anyone. The one-on-one help is crucial. Research by Code for America and others has found that in itself is not enough to tell people about tax credit. People are often intimidated by the required tax information and may need help filling out the forms.
Here are some questions and answers about earning tax credit:
How does the income tax credit work?
Credits are deducted from the amount you owe in taxes. The tax credit for earned income is ‘repayable’, which means that if a family’s credit is more than it owes in tax, the co-payment is paid out as a repayment.
The amount of credit varies depending on your income, family size and filing status. For the 2020 tax year, the credit is available for files earning up to approximately $ 57,000. The maximum credit is $ 6,660.
What if my income were to decline in 2020 as a result of the pandemic?
The latest round of federal pandemic relief has addressed this situation. When you file your tax return for 2020, you will be able to use the income you earned in 2019 to be eligible for the tax income on earnings, as well as for the refundable portion of the child tax credit, if it results in larger credits. . Generally, as your earnings increase, the amount of your credits increases to the maximum allowable credits.
When does tax filing season begin?
The IRS usually starts accepting tax returns at the end of January. People who claim the tax credit on earnings and the child tax credit usually file early. By law, the IRS does not pay tax refunds for returns that the credits claimed before mid-February.