Courtney O’Reilly, director of Tax Help Colorado, a VITA participant who worked with Code for America in 2020, said that even without a pandemic, traditional VITA locations may not always be convenient for working families. People may not be able to take time off work to visit the site and may have to wait in line.
“Free doesn’t always mean affordable,” said O’Reilly.
Two years ago, the group started looking for ways to reach more qualified families for income tax credit, she said, and found the Get Your Refund platform useful.
Using the Get Your Refund website or mobile app, filers can verify your identities and upload tax documents and then speak to a volunteer who will prepare your return, all without meeting someone in person. Individual help is crucial. Research by Code for America and others found that telling people about the tax credit alone is not enough to make them claim. People are often intimidated by the required tax information and may need help filling out forms.
Here are some questions and answers about work tax credit:
How does the income tax credit work?
Credits are subtracted from the amount due in taxes. The income tax credit for work is “refundable”, which means that if a family’s credit is greater than due in taxes, the excess will be paid as a refund.
The credit amount varies according to your income, family size and status of the process. For fiscal 2020, the credit is available to architects earning up to about $ 57,000. The maximum credit is $ 6,660.
What if my income drops in 2020 because of the pandemic?
The latest round of federal pandemic aid addressed this situation. When submitting your 2020 income tax return, you will be able to use the income you earned in 2019 to qualify for the earned income tax credit, as well as the refundable portion of the child tax credit, if it results in larger credits. Generally, the amount of your credits increases as your earnings increase, up to the maximum allowable credits.
When does the tax reporting season start?
The IRS usually begins to accept tax returns in late January. People who claim the income tax credit for work and the child tax credit usually enter the process in advance. By law, as a fraud prevention measure, the IRS does not pay tax refunds for claims that claim claims before mid-February.