Since it was introduced nearly 45 years ago, earned income tax credit has boosted the income of low and moderate income staff. The IRS reports that four out of every five EITC employees claim the benefit, but they would like to see everyone who qualifies benefit from it. If you qualify, this tax credit can help you to make this tax season a little more room for your budget. Some facts about the EITC you need to know: eligibility: even if you have not previously qualified, if your family or financial situation has changed, you may be eligible for this year. Review the requirements annually, as you must claim your tax credit in order to receive it. You have to work throughout the year and earn less than $54,884 in income. You can still file a credit claim even if you do not have to file a tax return.
Rules: The EITC has a certain set of guidelines and it is important to correctly follow them in order to obtain the credit. Consider this: You can not file separately Married Filing. All parties listed on the return must have a valid Social Security Number (you, your spouse and dependent children). Income like wages, self – employment and agricultural income must have been earned in the tax year. You may be eligible for credit if you are married or single, whether or not you have children. However, without children, you have to meet additional restrictions on age, residence and dependency. For all military personnel serving in a fighting zone, special guidelines apply. The income tax credit can reduce the amount of federal taxes you owe that can reimburse you. Qualified taxpayers may receive up to $6,431 of a credit. That’s enough reason to see if you qualify today!