Tuesday, December 27, 2011

The Tax Break Just for Poor and Moderate Income People...The Earned Income Tax Credit (EITC)

People are now thinking about filing taxes for the past year.  Please remember that if you are a low-income person, or even a moderate income person supporting children or a permanently disabled person, you may qualify for the earned income tax credit.  It may be worth looking into.

You can start looking into the EITC on this page. It's the overview of the program.  If you dig around a little you can find this page that gives you the income limits and maximum tax credits for the tax year 2011 (the one you are going to file for in early 2012). It's frustrating, because as of December 27, 2011, the page only had a EITC assistant up to the tax year 2010.  But if you try the page later, it may have a more current EITC assistant. 

As noted, you don't have to have children to  qualify for this if your earned income is low enough.  Here, you can find out what qualifies as "earned income."  You can also find out who qualifies as an eligible child for EITC purposes here.  And if you are supporting a permanently disabled child of any age, they may count as an eligible child

However, you can't get the tax credit if you don't file--and you must file for the credit to get it. For couples filing jointly with three or more qualifying children (and incomes up to more than $49,000), they may be able to get a credit of over $5,000.  Who wants to leave that kind of money on the table?  Of all the "free money" hype, this one is real, and really helps people who need it. Look into your earned income tax credit options.

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