The Earned Income Credit was put into place almost 40 years ago. This credit has been helping low and moderate income workers boost their revenues. The IRS would like to see everyone that is eligible claim the credit, currently only 4 out of 5 workers are actually claiming the Earned Income Credit.
If you qualify for this credit it can help give a boost to your budge when it comes tax time. Here are some facts you should know about the EIC:
Are you eligible?
If you’re family or financial situation has changed the past year it may make you eligible where you haven’t been in the past. You should always review the requirements of the credit each year, you must claim the EIC in order to receive it. If you have worked throughout the year and have an earned income of under $52,427 you may qualify for the benefit. Even if you are not required to file a tax return you may still file a claim for the credit.
In order to claim the Earned Income Credit you need to follow a set of guidelines set forth by the IRS. Please consider the following items when determining eligibility:
You are not allow to have a filing status of Married Filing Separately.
Every person included in your return, such as yourself, spouse and any dependent children must have a valid Social Security Number.
All income must have been earned during the tax year, this includes incomes from wages, self-employment and farm income.
If you have no dependent children and are married or single you may qualify for the credit. There are additional requirements for tax filers without children such as, age, residence and dependency.
If you are in the military and serving in a combat zone there are special guidelines that apply to you.
You may be granted a refund by using the Earned Income Credit as it will lower the amount of your tax liability. Tax payers that qualify for the credit can receive up to $6,143 in reduce liability. That is a very good reason to check if you qualify.