Tag Archives: Earned Income Tax Credit

Five Credits Not To Be Overlooked

Not much can make you happy when it’s time to pay taxes. During the tax season, the tax credit can be your friend and ally, so it is important to know for which credits you can qualify. Tax credits reduce the amount of tax that you pay and some of them are even reimbursable. You […]

Why You Should File A Tax Return

Not every taxpayer is required to file a return. Depending on your income level, you may be entitled to claim more in deductions and credits than you’ve earned for the year. In these situations, you aren’t required to file a tax return since you have no taxable income to report to the IRS. Let’s say […]

When the EITC is Denied

If a taxpayer has had an EITC claim denied for any year after 1996, or if the EITC claim was reduced, and not due to a mathematical or clerical error, the taxpayer is required to attach Form 8862 the next time he tries to claim the EITC. If not, the claim is automatically denied. This […]

The Earned Income Tax Credit

There aren’t many refundable tax credits, however they can significantly make your pockets fuller at tax season. The Earned Income Tax Credit is one of the most popular refundable tax credits. Introduced in 1975 as part of the Internal Revenue Code, the purpose of this credit is to put more money back into the hands […]

Dependents Are a Benefit

Dependents are an important part of the tax filing process. Understanding who qualifies as a dependent is essential, as two tax incentives – the Earned Income Tax Credit and Head of Household filing status -require taxpayers to have one or more dependents. In most cases, dependents are the taxpayer’s child, as they rely on the […]

Important Tax Credits For 2017 Families

The Child Tax Credit can save parents up to $1,000 per child based on income. Higher income families are entitled to a smaller credit, as the IRS reduces the credit at modified adjusted gross income of $110,000 for joint, married taxpayers. The Child and Dependent Care Credit is an excellent way to recover some expenses […]

2017’s Earned Income Tax Credit

Many people forget about claiming the Earned Income Tax Credit (EITC) if they qualify. In fact, one out of every five qualified workers fail to claim the credit. This credit does more than reduce the amount of taxes you owe. Depending on your situation, you could be eligible for a refund, and there’s a chance […]

If you’ve claimed the EITC in the past, or you’re wondering if you’re eligible this year, you may have already researched the different income thresholds that determine whether you qualify. However, you might not know that there are other rules that affect eligibility in addition to the income limits. These include: Having at least $1.00 […]

Errors on your tax return happen, and generally they delay your refund. When the mistake is made while claiming the Earned Income Tax Credit, you can expect to wait a little longer to receive that part of your tax refund, even extending into months-long delays. In some cases, errors on the EITC portion of your […]

The Schedule EIC: Earned Income Credit

The Earned Income Tax Credit is refundable, allowing eligible low to moderate income workers the opportunity to reduce their taxable income. If its reduced below zero, the taxpayer may receive a refund of the excess amount of the credit. The credit is adjusted each year to account for the cost of living, as well as […]