(CNMI Division of Revenue and Taxation) — Workers may get a larger tax refund this year because of the Earned Income Tax Credit. But to get it, you must file a tax return and claim it.
January 31, 2025, marks the 19th anniversary of EITC Awareness Day, a nationwide effort to increase awareness about the EITC and other refundable credits. This February, DRT is promoting EITC and providing information on other refundable tax credits that you may be eligible for. This includes the Child Tax Credit and Additional Child Tax Credit, and the American Opportunity Tax Credit.
In 2024, 13,000 workers in the CNMI received about $23 million in EITC refunds.
If you worked last year and your income is less than $66,819, check out your eligibility for EITC. EITC can mean up to a $7,830 refund when you file a return and have qualifying children. Workers with no qualifying children could be eligible for a smaller credit. The average EITC credited in the CNMI for 2024 was $1,740.
Why is it important to have an EITC Awareness Day each year? One-third of the EITC population changes each year. Only four out of five workers claim the EITC they earned. This leaves millions of dollars on the table each year. We want to get the word out to those who are eligible to file a tax return even if they don’t owe any tax to claim the EITC. Its money workers can use for groceries, rent, utilities and other bills.
EITC is complex. It varies by income, family size and your filing status. To be eligible, you must have earned income or certain disability income. This means you must have income from working for someone or working for yourself.
Find out if you are eligible by visiting www.irs.gov/eitc/.
Make sure you get the right amount of credit due you. If you have someone prepare your return, bring the following to your preparer:
• A valid driver’s license or other photo ID card
• Social security cards, a social security number verification letter for all persons listed on the return
• Birth dates for all persons listed on your return
• All income statements: Forms W-2, W-2CM, 1099, Social Security, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If you run a business or farm, records of all income earned.
• All records of expenses, such as tuition. And, if you run a business or farm, records of all related expenses.
• Copies of last year’s tax returns, if available
• Bank routing numbers and account numbers to direct deposit any refund
• Dependent childcare information: name and address of who you paid and either the caretaker’s SSN or other tax identification number
Visit www.finance.gov.mp/announcements for updates on upcoming workshops on EITC and other tax credits.