25 Jan You May Qualify For Earned Income Tax Credit
Earning 53k or less? If you are, you may be eligible to qualify for Earned Income Tax Credit (EITC). EITC is an income tax credit for rural taxpayers, who are living paycheck to paycheck. Since it’s a refundable credit, there are certain criteria you must meet before you can apply. If you do qualify and claim it, you are capable of paying less on federal tax, paying no tax or receiving a large tax refund. EITC refunds can be as large as about $6,000 or as small as $500 depending on your qualifications, family size, and children’s qualifications. The following is some basic information about how you know if you are qualified for EITC.
How do I know if I am qualified for EITC?
- You have earned income and adjusted gross income within certain limits; AND
- You meet certain basic rules; AND
- You either: meet the rules for those without a qualifying child; OR
- Have a child that meets ALL the qualifying child rules for you, or your spouse if you file a joint return.
Some of the Basic Rules
- You or your child must have a social security number
- Must file either one of these: married filing jointly, head of household, qualifying widow or widower, or single.
- Your tax year investment income needs to be $3,400 or less for the year.
- Must not file Form 2555 (see IRS website for more information about the form)
- You must earn an income that is greater than $1
- Both your earned income and adjusted income needs to be under a certain amount (see IRS website for more details)
Contact Tax Defense Partners today for additional details.