Families are owed up to $20,000, but almost one in five don’t claim it.
Tax season is full of stress. You have to take time to find all the paperwork, sit down to answer dozens of questions, and nervously wait to see if you owe money that year. But, there could be good news. If you haven’t filed your taxes recently, you could be leaving thousands of dollars on the table.
The Earned Income Tax Credit (EITC) is designed specifically to put money back into the pockets of hard-working people. However, many families don’t know that it exists.
The EITC is one of the most expansive benefits programs in the country, providing critical support to people and families who earn up to $67,000 each year. You might be eligible even if your income was too low to require filing a taxes, or if you only earned self-employment income. For example, a single person who earned less than $13,000 last year isn’t required to file taxes, but may still qualify for the EITC. You also don’t need to have children or dependents to claim the credit — anyone who worked may be eligible.
Connecticut residents can also claim a state EITC. Together, the state and federal EITC can add up to nearly $20,000 a year for some families. That’s money that could be used towards a down payment on a home, paying off a car loan, helping to launch your small business, or catching up on credit card debt.
That’s how Hala Ghali, a New Haven mom, planned to spend the $21,000 she received in total tax credits. She was able to pay off her student loans and is now working towards buying a house. Heather in Idaho used the money to catch up on missed mortgage payments and save her home from foreclosure.
Yet, around 20% of eligible people in Connecticut don’t claim what they are owed, leaving more than $100 million unclaimed each year. Even if you haven’t filed taxes for several years, it’s not too late to claim your EITC. You can backfile tax returns up to three years later (for this year, that would mean you can still file for 2021, 2022, and 2023 when you file your 2024 taxes), which means you can still claim the money you’re owed for those years.
Knowing how life-changing the credits can be, The Connecticut Project has launched a campaign to raise awareness for the 45,000 EITC-eligible Connecticut residents who haven’t filed taxes for 2021, 2022, or 2023, and to make sure people eligible for 2024 claim what they’re owed, too. By providing resources, we hope more families and individuals get the financial support they deserve.
If you haven’t filed your taxes yet, you can do it for free at Volunteer Income Tax Assistance (VITA) sites. These government-certified, safe, and trustworthy locations can save you an average of $200 in fees. Returns filed at VITA sites tend to have lower audit rates than those prepared elsewhere. VITA sites offer the option of filing in-person with a certified tax preparer, or virtually through a secure portal. Simplify CT is also now taking appointments for people who want to claim their EITC money. These free sources give you peace of mind as you navigate tax season and find the refunds you’ve earned.
