PHOENIX, AZ--(Marketwired - February 21, 2017) - As Arizonans prepare their taxes to meet the April 18 filing deadline, attorneys with Phoenix-based bankruptcy firm The Oswalt Law Group is offering a reminder about the Earned Income Tax Credit (EITC) -- a relatively seldom used credit that could be worth thousands.
"The EITC is designed to help low-to-moderate income earners, yet one out of every five eligible workers do not take advantage of it," said one Oswalt attorney.
According to the Internal Revenue Service (IRS), the average amount received through the EITC last year was just over $2,400. However, the credit can be worth more than $6,000 to eligible filers. While it can reduce the amount of taxes you owe, the EITC can also be refunded if you owe no taxes at all.
Some filers, particularly those with disabilities, may fear that a tax refund could affect their eligibility for other benefits, like Medicaid. However, according to tax law, tax refunds are not counted as income in determining eligibility for government-provided benefits.
Filers who overlooked the EITC last year can amend those returns. "You're allowed by the IRS to file or amend your return up to three years after the original due date," explained the Oswalt attorney.
About Oswalt Law Group: With offices in Phoenix, Tempe and Peoria, The Oswalt Law Group provides professional legal financial advice to Arizonans facing crippling debt. For information about strategies for reducing and eliminating debt, visit statewidebankruptcy.com or call (602) 225-2222.