EARNED INCOME TAX CREDIT (EITC): IRS Publication #5334 & #596
The Earned Income Tax Credit benefits working people with low-to-moderate income.
The EITC not only reduces the amount of tax someone owes, but may also give them a refund, even if they don't owe any tax at all.
To qualify, people must meet certain rules and must file a federal tax return even if they don't owe any tax or aren't otherwise required to file.
RULES FOR EVERYONE: ALL Taxpayers must meet these rules
1-Your adjusted gross income must be less than the IRS limits for your specific tax situation (Publication #596) for the specific tax year in question.
2-You must have a valid Social Security Number by the due date of your tax return (including extensions).
3-Your filing status can't be married filing separately.
4-You must be a U.S. citizen or resident alien all year.
5-You can't file Form 2555 (Foreign Earned Income Exclusion)
6-Your investment income must be under the IRS allowed amount for the specific year in question.
7-You must have earned income:
RULES IF YOU HAVE A QUALIFYING CHILD:
1-Your child must meet the relationship, age, residency, and joint return tests (ALL tests must be meet)-See IRS Publication #596
2-Your qualifying child cann't be used by more than one person to claim the EIC.
3-You can't be a qualifying child of another taxpayer.
RULES IF YOU DON'T HAVE A QUALIFYING CHILD:
1-You must be at least age 25 but under age 65.
2-You can't be the dependent of another taxpayer.
3-You can't be a qualifying child of another taxpayer.
4-You must have lived in the U.S. more than half the year.
RULES FOR EARNED INCOME LIMIT:
1-Your earned income must be less than the IRS Limits in Publication #586.
IRS WEBSITE ONLINE CALCULATOR TOOL:
The IRS website at www.irs.gov has an online interactive tool taxpayers can use to assist them to see if they qualify for the EITC each year.
It is recommended to check each year to see if you qualify for that particular year.
It may put hundreds or even thousands of dollars in your pocket!
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concenrs or would like to schedule a FREE, Confidential, No-Obligation Tax-Saving Consultation.