Claim the Earned Interest Tax Credit

January 28, 2017

 

The Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break for 40 plus years. Yet, one out of every five eligible workers fails to claim it. Here are some things taxpayers should know about the EITC:

  • Review Your Eligibility. Taxpayers who worked and earned under $53,505 may qualify for EITC. Filers should review EITC eligibility rules if their household income or family situation has changed. They may qualify for EITC this year, even if they did not in the past. To qualify, a taxpayer must file a federal income tax return claiming the Earned Income Tax Credit.  This is true even if a taxpayer is not otherwise required to file a tax return. Use the EITC Assistant tool to find out about eligibility rules and amounts.
     

  • Know the Rules. Taxpayers need to understand the rules before they claim the EITC. It is important to get this right. Here are some factors to consider:

    • Taxpayers who are married and file a separate return do not qualify for the EITC.

    • Filers must have a Social Security number valid for employment for themselves, their spouse (if married), and any qualifying child listed on their filed tax return.

    • Taxpayers must have earned income. This may include earnings from working for someone else as an employee or being self-employed.

    • Filers may be married or single, with or without children to qualify. Those who do not have children must also meet the age, residency and dependency rules. For a child to qualify, they must have lived with the taxpayer for more than six months in 2016. In addition, the child must meet the age, residency, relationship and joint return rules to qualify.

    • U.S. Armed Forces members serving in a combat zone have special rules that apply.
       

  • Lower Your Tax or Get a Refund. Filers who qualify for EITC could pay less federal tax, no tax or even get a refund. The EITC could be worth up to $6,269. The average credit was $2,482 last year.
     

  • Refunds Held Until Feb 15. Beginning in 2017, if taxpayers claim the Earned Income Tax Credit or Additional Child Tax Credit on their tax return, the IRS must hold their refund until at least February 15. This applies to the entire refund, even the portion not associated with these credits. However, the IRS is accepting and processing these tax returns so taxpayers should file as usual. There is no need to wait until February 15.

 

 

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Claim the Earned Interest Tax Credit

January 28, 2017

1/1
Please reload

Recent Posts
Please reload

Archive
Please reload

Search By Tags
Please reload

This site was designed with the
.com
website builder. Create your website today.
Start Now