Mocobizscene- Taxpayers in the United States have less than three months to gather their tax documents and file their personal income tax returns. The countdown has officially begun, and it’s time to start preparing for tax season.
A DC mother shared with DC News Now that she was pleasantly surprised to discover that she had received credits that she was not aware of, resulting in thousands of dollars being added to her wallet.
Chantel Johnson, a mother of three from Northwest, was astonished by the size of her tax refund in 2020. Despite working nearly full-time as a bank teller, she couldn’t believe the amount she received.
“I initially thought it was an error,” Johnson said on Monday. She received a total of around $10,000 and mentioned, “I managed to clear my debts and buy a new vehicle” after her previous car was declared a total loss.
Johnson expressed her gratitude for the Earned Income Tax Credits (EITC) that proved to be invaluable in alleviating her financial burdens.
During a presentation at the DC Office of Tax and Revenue, Paul Smith, the Taxpayer Advocate, highlighted the potential for substantial refunds through the combination of the District’s EITC and the US Treasury’s EITC.
“D.C. is known for its generosity when it comes to providing support to its residents. In fact, it proudly offers one of the highest percentages of the federal EITC in the entire country, standing at an impressive 70%.”
Maryland offers a generous state Earned Income Tax Credit (EITC) of up to 50% of the federal EITC on their state returns. On the other hand, Virginia provides a comparatively lower state EITC of up to 15%. The general criterion for EITC eligibility is a household income of $64,000 or less.
When asked what information taxpayers should keep in mind before filing their returns to optimize their refunds and prevent any notices from the IRS, Smith recommended a few key points. She emphasized the importance of providing all necessary tax documentation and keeping track of receipts, specifically mentioning charitable contributions. Additionally, she advised taxpayers to thoroughly explore the potential tax credits that they may be eligible for.
Taxpayers have the option to choose various credits in addition to the EITC. These credits encompass being a parent or caretaker, paying for college, contributing to retirement accounts, investing in specific clean vehicle and clean home energy investments, or purchasing insurance within the marketplace.
To locate a tax professional in your area who offers free services, you can visit the official website of the Internal Revenue Service (IRS) at irs.Treasury.Gov/freetaxprep/. Taxpayers generally have until April 15th to file their personal federal returns or request an extension.
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