Tax preparers, accountants, and other island residents listen to information about the Earned Income Tax Credit during an info session conducted by the Division of Revenue and Taxation at the multi-purpose center on Monday, March 10, 2025.
THE CNMI Division of Revenue and Taxation held an outreach event on Monday, March 10, at the multi-purpose center to help residents understand what qualifies taxpayers for the federally funded Earned Income Tax Credit or EITC.
Presenter Halia Taisacan said veterans, individuals without children, those in non-traditional households, people whose income has declined, and caregivers of children with disabilities are at risk of missing out on the credit despite being eligible.
She said a person must meet certain basic rules to qualify for the EITC, including having earned income, an investment below the limit, a valid Social Security card, U.S. citizenship or resident alien status for the entire year, not filing a Form 2555, and meeting specific requirements if separated from a spouse and not filing a joint tax return.
Taisacan said the credit was made for people who are employed, and it functions “like a tax break to help with their groceries or what have you.”
For the purpose of the EITC, income is defined as money made from self-employment, benefits from a union strike, money earned as a statutory employee, and other qualifications. There are some opportunities to file for the EITC if it is money earned by ministers or those in a religious order. Military members earning nontaxable combat pay also qualify for the EITC.
“Earned income” does not include pensions, Social Security, unemployment benefits, alimony, or child support.
Taisacan said to qualify for the EITC, a person must have investments below $11,600.
In regards to “nontraditional homes,” Taisacan said one example of this kind of household is a situation in which a grandparent is raising a grandchild.
“If the child is a dependent and the grandparent provides more than half the [child’s] support, they can avail [themselves] of the credit,” she said.
Those whose income declined in a tax year may also qualify for the EITC.
“[For example,] one year the taxpayer was making way too much, they couldn’t claim this credit. They’re not in this bracket. But they changed their job and their income decreased. Now they’re eligible to claim,” Taisacan said. “We don’t want people thinking ‘Oh, I made too much five years ago, I’m not going to be qualified now.’ We want to raise awareness that you may still be eligible.”
Military members earning combat pay and those stationed in a foreign country can file for the tax credit, Taisacan said.
“For the purpose of the credit, you are considered as being in the U.S.,” she added.
Residents caring for disabled children can also qualify for the EITC, Taisacan said.
For more details, she urged residents to visit the Internal Revenue Service’s website: https://shorturl.at/tYCzy
