WASHINGTON (WDVM) – District residents with low and moderate incomes can receive free, virtual tax preparation services through the DC Department of Insurance, Securities and Banking (DISB) and United Way of the National Capital Area (United Way NCA).
These individuals may also be eligible for the Earned Income Tax Credit (EITC), which is the nation’s largest and most effective anti-poverty program. People are eligible for the refundable tax credit this year if their income does not exceed $57,414. They must also have investment income of less than $10,000, have a valid Social Security number, be a U.S. citizen or resident alien, and be unable to file Form 2555.
Officials warn that the most important thing for residents to do is make sure they file their taxes.
Michelle Hammonds, director of the Office of Financial Empowerment and Education, said: “People on low incomes feel like they don’t have to file because it’s not a requirement until a certain amount of income, so they may miss something. on this particular credit and many others if they do not file their taxes.
The EITC could put up to $6,700 in the pockets of eligible taxpayers. According to the IRS, 25 million workers and families received approximately $62 billion in EITC in December 2020. The average amount of EITC received nationwide was approximately $2,461.
“Giving more Washingtonians a fair chance means making sure they know about programs like the Earned Income Tax Credit,” Mayor Bowser said. “Now we need to get the message out that through this collaboration with the United Way NCA and other supportive partners, residents can work with IRS-trained professionals and volunteers — for free — to get credit that can be worth thousands of dollars.
Tax preparation services begin January 28 and are available virtually or in person (in accordance with COVID-19 safety protocols).