There are many requirements you must meet in order to qualify, but it may lower your tax bill.
Supporting a family can be difficult, not to mention expensive. Working families whose income is fairly low need all the help they can get with their income taxes. The Earned Income Tax Credit (EITC) was put in place by Congress to provide relief for low-income families who may have trouble paying their tax bills. Qualifying for the Credit You may be eligible for the EITC if you have earned income, are not filing as married filing separate, and are claiming adjusted gross income within certain limits. Earned income would consist of:
In addition to earned income, any investment income you received must be $3,350 or less for the year to qualify for the EITC. Taking the Credit If You Have Children The EITC was put in place to help those with children, so the amount of the credit will depend on the number of children you have. You can receive a credit if you do not have a qualifying child, but the credit is greater if you do. A qualifying child would be one who:
Taking the Credit If You Don’t Have Children If you do not have a qualifying child, you can still get the credit. However, in addition to the rules mentioned previously, you will have had to have lived in the U.S. for over half the year, be between 25 and 65 years of age, and cannot be claimed as a dependent on someone else’s return. The Form In order to claim the credit, you will need to file Schedule EIC. There are a few pieces of information we will need to complete this schedule, such as Social Security cards, birth dates, the previous year’s federal and state returns, and documentation of income (W-2s and 1099s, income and expense records, etc.). That may sound like a lot of paperwork, but you’d need most of it to file your taxes anyway. If you think you may be eligible for the EITC, contact us to discuss your situation, and we will be glad to help you. Comments are closed.
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