WASHINGTON (WDVM) — Low and moderate-income District residents can receive free and virtual tax preparation services by the D.C. Department of Insurance, Securities and Banking (DISB) and the United Way of the National Capital Area (United Way NCA).

Those individuals could also be eligible for the Earned Income Tax Credit (EITC), which is the country’s largest and most effective anti-poverty programs. People are eligible for the refundable tax credit this year if their income did not exceed $57,414. They also have to have investment income below $10,000, have a valid Social Security number, be a U.S. citizen or resident alien and can not file form 2555.

Officials warn the most important thing for residents to do is make sure they are filing their taxes.

Michelle Hammonds, Director of the Office of Financial Empowerment and Education, said, “People with a lower income, they feel like they do not have to file because it is not a requirement up to a certain income amount, so they may be missing out on this particular credit and many others if they are not filing their taxes.”

The EITC could put up to $6,700 into the pockets of eligible taxpayers. According to the IRS, 25 million workers and families got about $62 billion in EITC as of December 2020. The average amount of EITC received nationwide was about $2,461.  

“Part of giving more Washingtonians a fair shot is making sure they know about programs like the Earned Income Tax Credit,” said Mayor Bowser. “Now we need to spread the word that through this collaboration with the United Way NCA and other supporting partners, residents can work with trained IRS professionals and volunteers—for free—to get a credit potentially worth thousands of dollars.” 

Tax preparation services start on January 28 and are available virtually or in-person (following COVID-19 safety protocols).