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Many lower-wage workers who are raising families bank on receiving a healthy, four-figure tax refund, probably their biggest single check of the year, when they claim the Earned Income Tax Credit on their income tax returns.
What happens if you were out of work much of 2020 during the pandemic? Are you suddenly shut out of the earned income credit, which, as the name implies, requires that you work and earn money? Will hundreds or even thousands of dollars disappear from your tax refund?
Millions of struggling families would have faced just that sort of financial nightmare this spring if not for an 11th-hour action by Congress late in December.