THE CNMI is expected to release $50 million in Earned Income Tax Credits, or EITC, according to Secretary of Finance David DLG Atalig.
“The U.S. Treasury just approved our implementation plan. Similar to how we did the stimulus in terms of working with the [Internal Revenue Service, or] IRS, the EITC works the same way,” he said.
Atalig said the Department of Finance-Division of Tax and Revenue will be creating a guidance and forms to ensure that when CNMI taxpayers submit their tax returns, they will receive these funds, if qualified.
“We’re talking a lot of money, up to $6,000 per family that can qualify. This is great for the Commonwealth,” he added.
The American Rescue Plan Act, or ARPA, allowed the IRS to completely reimburse the CNMI for the EITC that will be disbursed this year, Atalig said.
As soon as the funds come in, he said, the U.S. Treasury will push them out, similar to the previous disbursement of the child tax credits.
“The EITC is part of the ARPA bill. We weren’t able to implement it last calendar year, but we are able to implement it this calendar year. We asked not to [pay] the costs up front because of cash flow. The IRS will review and then remit money through us,” he said.
As for the regular tax refunds, Atalig said, “For those that qualify and get tax refunds, we will be processing it a lot sooner.”
According to the IRS, EITC helps low- to moderate-income workers and families get a tax break.
If you qualify, you can use the credit to reduce the taxes you owe and possibly increase your refund.
You may claim the EITC if your income is low- to moderate.
The amount of your credit may change if you have children, dependents, are disabled or meet other criteria.
To qualify for the EITC, you must have worked and earned income under $57,414, have investment income below $10,000 in the tax year 2021, have a valid Social Security number by the due date of your 2021 return, including extensions; be a U.S. citizen or a resident alien all year, and not file Form 2555, which is related to foreign earned income.
The EITC has special qualifying rules for military members, clergy members, and taxpayers and their relatives with disabilities.
Everyone you claim on your taxes must have a valid Social Security number issued before the due date of the tax return you plan to claim, including extensions.
If you claim the EITC your refund may be delayed, as, by law, the IRS must wait until a certain timeframe to issue refunds to taxpayers who claim this credit.
For more information on qualifications for the EITC, visit https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-earned-income-tax-credit-eitc
