Here is an aspect of income taxes you will want to know about.
The Earned Income Tax Credit (EITC) is a benefit for those citizens with low to moderate income and has helped millions of people out of poverty. Make sure to file your taxes to determine if you qualify for this monumental benefit.
According to the IRS, approximately 9 percent of the American population (27.5 million) received the EITC with the average return yielding about $2,400. This still does not account for everyone that could potentially qualify for this benefit. Again, according to the IRS, 1 in 5 qualified tax payers fail to claim this tax credit.
Here is important information regarding the tax credit, and how you may be able to get it.
Who is eligible?
- Tax Payers that meet the income limit requirements
- If you are over 25 years of age, or have qualifying children
- Tax Payer must not file their tax return as “married filing separately”
- You have earned income from employment
- You are a U.S. citizen
How much will I receive in credit?
Your annual income and the number of children you have will determine everything.
- $503 with no qualifying children
- $3,359 with one qualifying child
- $5,548 with two qualifying children
- $6,242 with three or more qualifying children
What are the income limits?
The income limits are adjusted each year. Here are in the income limit for 2015:
- $14,820 ($20,330 married filing jointly) with no qualifying children
- $39,131 ($44,651 married filing jointly) with one qualifying child
- $44,454 ($49,974 married filing jointly) with two qualifying children
- $47,747 ($53,267 married filing jointly) with three or more qualifying children
For more information regarding your taxes please contact a licensed tax professional.
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