Benefit Programs

What are Advance Tax Credits?

Comity Team · Feb 23, 2022 portrait
Comity Team · Feb 23, 2022

For many working Americans, the Earned Income Tax Credit (EITC) is a powerful tool for supporting families and supplementing income. However, the EITC is tied to your tax return, which means that you get the money in one lump sum a few weeks after whenever you file your taxes.

At Comity, we think there’s a better way. Meet Comity’s Advance Tax Credits, where you can access your annual tax return as predictable monthly cash. Comity members report having 20% more to spend on groceries, gas, utilities, or anything else they need. In this article we’ll go over all the details of Advance Tax Credits, help you figure out whether you qualify, and get you started receiving a predictable monthly income today. Ready to go?

First things first: meet the EITC

The Earned Income Tax Credit (also known as EITC or EIT) is a tax break for low- to-moderate-income workers, and none other than Warren Buffet has said the “Earned income tax credit is the best way to put money in people’s pockets” to help address income inequality [1].

How large an EITC you might get from the government depends on your tax filing status and how many children you have (if any).

2021 EITC Income Eligibility Table (for taxes due in 2022) [2]

2022 EITC Income Eligibility Table (for taxes due in 2023) [3]

→ For (lots!) more information on the EITC, see our article Meet the EITC: Everything you need to know about the Earned Income Tax Credit.

But here’s the thing about the EITC: you can only access the amount once a year, after filing your taxes. This can be helpful for certain things, but not others. We’re thinking about payments such as car insurance or rent, or spare cash for when life’s inevitable challenges arise. To help address this, may we introduce you to Advance Tax Credits?

Advance Tax Credits: Grab Your EITC Now

Comity’s Advance Tax Credits convert the money from your tax refund into predictable monthly income for you and your family. This money is already within the tax system – it’s the same amount that you’d receive in your tax return. Instead of waiting for April, though, Comity helps you estimate your benefit now so you can unlock your tax return into a monthly income for the things you need today. Here’s how Advance Tax Credits work.

  • Estimate. Calculate your EITC with Comity’s Benefits Calculator. We’ll ask you questions about things like your filing status, how many children you have (if any), and your expected income for the year. Eligibility for Comity’s Advance Tax Credits is exactly the same as eligibility for the EITC.
  • Enroll. Once you know how much you can expect to receive come tax time, you’ll enroll as a Comity Member through our app. This involves submitting some paperwork and should take just a few minutes.
  • Earn. Members can get up to $500 per month via Advance Tax Credits to spend on anything you and your family need. Every month you can refresh your ATC through the Comity App. All members pay a flat fee of 3.75% of your monthly spending – no interest, and no hidden fees. That’s it.
  • File for free. Come tax time, you’ll work with Comity’s partner network of expert tax preparers, who will help file your tax return, for free. We’ll use your refund to close your Advance Tax Credits balance, and you’ll get the rest.

Ready to Get 20% More Per Month?

Let’s get you started with Comity Advance Tax Credits. Along the way you’ll be supported by our dedicated team of Member Advocates (because we know that government benefits, taxes, and financial systems in general can be confusing). We’re here to help answer any questions you have.

Estimate your Advance Tax Credit benefit

Sources Cited

Source 1: Catherine Clifford, CNBC, Warren Buffett: This is the best way to put cash in the pockets of people who need it.

Source 2: IRS, Income Limits and Range of EITC.

Source 3: IRS, 26 CFR 601.602: Tax forms and instructions, Page 10.

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