Tag Archives: earned income

Not only parents qualify for the EITC

It’s nice to work hard and get a bit of a break at tax time. The Earned Income Tax Credit (EITC) does exactly that for workers who earn a lower income, giving back some of the taxes these workers paid. It’s refundable, so eligible taxpayers without a tax liability can receive money back from the […]

Taxing Your Tips

As a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]

Earned Income Tax Credit: Rule 4

The Earned Income Tax Credit is only available to U.S. Citizens or resident aliens. You must have citizenship or residency for the entire tax year, as those who have nonresident alien status for any portion of the year are not able to claim the EITC, unless they file jointly with their spouse. However, one spouse […]

Earned Income Tax Credit: Rule 3

In order to claim the Earned Income Tax Credit (EITC) as a married couple, you generally are required to file a joint return. Therefore, you can’t use the “married, filing separately” status if you want to claim the EITC. In some cases, your spouse may have lived separately from you for the final six months […]

Earned Income Tax Credit: Rule 1

The Earned Income Tax Credit (EITC) is a great way for low-income workers and their families to receive a little extra assistance during the tax season. There are seven major requirements a taxpayer must meet in order to pre-qualify for the EITC. If you meet all seven, there are additional rules that you have to […]

Three E’s to Know at Tax Time

It seems like there’s so much to learn about the tax world. Many terms are relative, and once you learn them, you can apply them to other parts of the tax code. Earned income, for example is a vital definition to know so you can know what parts of your income are taxable. The following […]

No one enjoys paying taxes, however the fact that you’re entire salary isn’t taxed by the federal government should make it a little bit easier to swallow. During tax time, you’re required to report your entire income, but the IRS deducts certain amounts, like education costs and retirement plan contributions, before determined the amount of […]

Filing your tax return doesn’t have to be stressful. Many people worry about making a mistake when filing, and surprisingly, mistakes do happen. It’s not the end of your tax world. It does mean that the IRS may take longer in processing your return, leading to a delay in your refund. Mistakes are less common […]

Student? Get a Tax Education

Just because you are a fulltime student doesn’t mean you are automatically exempt from filing a tax return or reporting your income. If you didn’t have enough withheld during the year, you may owe a surprising amount of taxes. If you don’t have to file a return, you still should, as you may be entitled […]

Children Filing Tax Returns

There’s a chance that you may have children who are required to file a tax return, even if they are a dependent of yours. Typically, the child is held accountable for filing the return, as well as paying any taxes owed, along with penalties and interest. In some cases, if the child fails to pay, […]