JERSEY CITY, N.J., Jan. 27, 2022 /PRNewswire/ -- One of the biggest tax credits is one of the most overlooked tax credits: the Earned Income Tax Credit (EITC). To help ensure everyone who qualifies for the EITC gets it, Jackson Hewitt Tax Services® is participating in this year's EITC Awareness Day, on Friday, January 28, 2022. The EITC is one of the largest tax credits available to eligible taxpayers, valued at up to $6,728 for qualifying taxpayers with three or more children.

"The Earned Income Tax Credit is an incredibly valuable credit and according to the IRS, about 20 percent of taxpayers eligible for the EITC do not claim it each year. But there are requirements that taxpayers must be aware of, in order to be eligible for the EITC," said Mark Steber, Chief Tax Information Officer at Jackson Hewitt. "Most importantly, this credit is based on earned income and adjusted gross income. Unemployment benefits are not considered earned income, but they are part of the adjusted gross income. This means taxpayers who received unemployment benefits in 2021 could have the amount of their EITC impacted."

According to the IRS, the maximum EITC amount increased to the following amounts for 2021, meaning taxpayers could get bigger tax refunds than ever before:

• $6,728 – Credit for three or more qualifying children (up from $6,660)
• $5,980 – Credit for two qualifying children (up from $5,920)
• $3,618 – Credit for one qualifying child (up from $3,585)
• $1,502 – Credit for taxpayers with no children (up from $538)

"We want to make sure no one leaves money on the table this year, because there are thousands of dollars worth of new tax credits. We at Jackson Hewitt help taxpayers track down every credit and deduction that they're eligible for, which is why participating in EITC Awareness Day and bringing awareness to the credit is important to us, now more than ever," said Steber.

There are also earned income requirements to be eligible for the EITC that taxpayers can find on jacksonhewitt.com or IRS.gov. For example, taxpayers who are married filing jointly must have an earned income and adjusted gross income of less than $57,414, and three or more qualifying children (up from $56,844); while single and head of household filers with three or more qualifying children must have an earned income of less than $51,464.

Additionally, because of the American Rescue Plan Act of 2021, there are major positive changes to the EITC for taxpayers with no children for tax year 2021. Temporary changes include:

• The Prior-Year Earned Income Rule will be available using 2019 earned income only
• The minimum age is now 19 (from 25)
• Certain children who are 18 and homeless, or who have "aged out of foster care," are eligible for the EITC with no children, if they meet the other rules
• There is no maximum age (was 65)
• The maximum credit amount increased to $1,502 (up from $538)
• The maximum phase-out income increased to $21,430 (up from $15,820), and $27,380 (up from $21,710), if married filing jointly

Permanent changes to the EITC include:

• Maximum investment income limit has increased to $10,000 (from $3,650) and will be adjusted for inflation annually
• Individuals with dependent children who don't have a valid Social Security number may qualify for the EITC without children
• Certain married filing separately taxpayers who don't meet the rules for head of household may qualify for the EITC with no children if:
• They don't file a joint return
• They did not live with their spouse for the last part of the year
• They had a qualifying child for more than half the year
• This generally happens in a setting where they are not paying more than half the cost of the household so are not eligible for head of household

For more information about this and other valuable credits, as well as to find a nearby local office, taxpayers are encouraged to visit jacksonhewitt.com. 

About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission to provide its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead and stands behind its work with its Maximum Refund Guarantee® and Lifetime Accuracy Guarantee® (restrictions apply, see Jackson Hewitt's website for more details). Jackson Hewitt has more than 5,500 franchise and company-owned locations nationwide, including nearly 3,000 in Walmart stores, as well as online tax prep services, making it easy and convenient for clients to file their taxes. For more information about products, services, and offers, or to locate a Jackson Hewitt office, visit www.jacksonhewitt.com or call 1 (800) 234-1040.

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SOURCE Jackson Hewitt Tax Service Inc.