The lingering effects of the pandemic disrupted many routines, including tax filing. If you skipped filing your 2020 tax return, the IRS is offering you another chance to claim potential refunds. This is especially important if you qualify for benefits like the Earned Income Tax Credit (EITC), which could mean thousands of dollars back in your pocket.
Even if you’re not required to file a return based on income limits, filing can still be worth it to claim refundable credits. Let’s break down what you need to know to get what you’re owed.
Table of Contents
EITC
The Earned Income Tax Credit (EITC) is designed to benefit low- to moderate-income workers and families. Even if you didn’t file in 2020, you can still qualify for this credit by meeting these requirements:
- Dependent Children: The maximum EITC amount—$6,600—is for households with three or more qualifying children. Fewer children qualify for smaller amounts.
- Income Limits: The program targets households earning under $50,594 annually, though smaller credits may be available for those earning slightly more.
- Pending Tax Return: To claim your refund, you must file a 2020 tax return by January 14, 2025. Missing this deadline means missing out on the refund entirely.
While the highest refunds are reserved for large families with lower incomes, the average return is much lower, around $932. Even smaller refunds are worth pursuing—every dollar helps.
Claim Your Refund
Claiming your refund is straightforward, especially if you prepare in advance:
- Gather Necessary Documents: Collect all income records, such as W-2s or 1099 forms, and details about qualifying dependents.
- Complete the Tax Return: You can download the 2020 forms from the IRS website or pick them up at a local office.
- Submit Before the Deadline: Ensure your return is accurate and submitted by January 14, 2025. There will be no extensions.
If the process feels overwhelming, consider consulting a tax professional. They can ensure your return is complete and error-free, maximizing your potential refund.
Qualify
You don’t need to meet every EITC requirement to benefit. Even without dependents or if your income is slightly above the limits, filing could still result in a smaller refund. The only guarantee is that if you don’t file, you won’t receive anything.
Importance
Accuracy is essential. Incomplete or incorrect returns will be rejected, and with no chance for extensions, this could cost you valuable refunds. Use resources like the IRS’s website or professional tax services to double-check your submission.
FAQs
Who qualifies for EITC refunds?
Low-income earners with or without dependents may qualify.
What is the EITC deadline for 2020?
January 14, 2025, is the final date to file for 2020 refunds.
How much can you claim with EITC?
Up to $6,600, depending on income and dependents.
Can I file if I missed 2020 taxes?
Yes, you can still file and claim eligible refunds.
Do I need a tax professional?
Not required, but helpful for accurate filing.
