Monday, March 11, 2019

Do You Qualify for the Earned Income Tax Credit?


The earned income tax credit is a refundable tax credit. It was created for taxpayers earning a low to moderate income. Through this credit, qualified taxpayers can reduce or even eliminate their income tax liability. In some cases, taxpayers can even receive a refund if the credit outweighs how much they would owe in taxes.  


No matter how broadly the credit affects you, if you are eligible for it, you won’t want to miss out! This is a great way to save or potentially earn money. And, sadly, a lot of people miss out on it because they don’t know what it is or don’t realize that they qualify.

Eligibility Requirements

So, who is eligible for the earned income tax credit? Well, first of all, for the 2018 tax year, you’ll need to ensure that neither your adjusted gross income or your earned income exceed the following:

l  $49,194 with three or more qualifying children
l  $54,884 with three or more qualifying children if married filing jointly
l  $45,802 with two qualifying children
l  $51,492 with two qualifying children if married filing jointly
l  $40,320 with one qualifying child
l  $46,029 with one qualifying child if married filing jointly
l  $15,270 with no qualifying children
l  $20,950 with no qualifying children if married filing jointly

Other eligibility requirements include:

l  Being a US citizen
l  Being over the age of 25 or, if not over that age, having qualifying children
l  Not filing “married filing separately’
l  Having earned income from employment
l  Not having more than $3,500 from interest, dividends, and other investment earnings

If you think you meet these eligibility requirements, do not miss out on a great credit. Talk to your tax professional about the credit and how to ensure you get what is rightfully yours!

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