Earned Income Tax Credit Explained

Earned Income Tax CreditIf you have earned income, you might qualify for the Earned Income Tax Credit (EITC). Many folks who are accustomed to filing their own taxes may not realize what exactly the Earned Income Tax Credit is, and whether or not they qualify for the EITC. As user-friendly as many self-preparation tax programs might be, there can still be a lot of confusion surrounding the explanation and qualifications of certain credits such as the EITC. Qualifying for the EITC on your tax return may actually benefit your filing in that it may help you receive more money on your tax return, so it’s worth taking a few minutes to learn more about it. Let us explain the basics of the Earned Income Tax Credit.

Earned Income Tax Credit 101

The EITC is designed to provide a tax break to those who do not earn a lot of money. The Internal Revenue Service (IRS) describes the EITC as a refund credit to taxpayers who have annual income ranging from low to moderate. It is meant to provide the benefit of an income boost to those who meet certain qualifications.

Who Can Qualify For EITC?

US citizens with earned income who file as Single, Married Filing Jointly, Qualifying Widower, or Head of Household may qualify for the EITC if they meet the income limits. Filers much also must be between the ages of 25-65, have a Social Security number, and have a qualifying dependent.

Don’t Miss Out On Your EITC Refund!

Did you know that it is estimated that 1 of 5 taxpayers who qualify for the EITC fail to claim it on their annual tax returns? It pays to understand tax returns! To ensure that you aren’t missing out on tax refunds that you are qualified to receive, turn to the experts at E&Y Tax Preparation Services.

How Your Tax Filing Professional Can Help You

You should also be aware that the income limits for the EITC have been adjusted for the 2015 reporting year, so if you did not qualify for the EITC in past years, you might be able to claim it for 2015. The maximum credit amount has also increased this year. While this article does not include the comprehensive, specific qualifications and guidelines relating to the EITC, your filing professionals at E&Y Tax Preparation Services know the EITC inside out. For those who are attempting to file their own returns, we understand that it can be difficult to keep up with changes to the tax filing requirements. That’s why we are here to assist you with your tax preparation questions and filings, year after year. Call our team of professional tax preparers today at 248-362-1313 for a free consultation.