Traverse City, MI – Dating as far back as the mid-70s, the Earned Income
Tax Credit (EITC) was introduced to help low and middle-income families
reduce poverty and encourage the earning of income. Today it is perhaps
the most impactful tax credit available in the IRS tax code. In a new
post, National Tax Reports gives an overview of how this tax credit
works, what the qualifications are, and how any American can claim it.
There are a variety of criteria that must be met in order to qualify for
the Earned Income Tax Credit (EITC). Top on the list is earning a
taxable income. In this case, the higher number between your adjusted
gross income and your earned income is used for the purposes of
assessing the EITC. The others are:
• Numbers of qualifying children
• You and qualifying children must have a social security number valid for the purposes of employment
• Having an investment income not more than $3,450 for the tax year.
• Your filing status cannot be that of a ‚married filing separately‘.
• Not filing using the Form 2555 and Form 2555-EZ.
The amount of tax credit
that can be received from the EITC also depends on factors like the
number of children that qualify, one’s taxable income, and tax filing
status. There are strict income thresholds that influence how much the
credit might be worth with the highest threshold for the 2018 tax year
set at $6,431 for families with three or more qualifying children. Tax
filers with no qualifying children can still earn as much as $519.
National Tax Report recommends using TurboTax to file the Earned Income Credit.
The online tax platform will help you find out your filing status, if
your child is a qualifying child, if you are eligible, and estimate the amount of the credit you may get. And all you have to do is answer simple, plain-English questions about your family.
For more information about the Earned Income Tax Credit and how to take
advantage of the best tax benefit available, please visit, https://nationaltaxreports.com/what-is-earned-income-tax-credit-how-to-claim/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published
author. He has written tax and finance related articles for eight years
and has published over 900 articles on leading financial websites.
Contact Information
Frank Ellis
National Tax Reports
945 East 8th Street Suite A
Traverse City, Michigan 49686
Website: http://nationaltaxreports.com