Ten Things You May Not Know About the Earned Income Tax Credit
The Earned Income Tax Credit is for people who work, but have lower incomes. Here are some things you may not know about the EITC.
1. A quarter of all taxpayers that qualify don’t claim the credit.
2. If you qualify, it could be worth up to $4,800 this year. (For the EITC calculator follow this link http://apps.irs.gov/app/eitc2008/Forward_2008_Calc.do)
3. Your filing status cannot be Married Filing Separately. Your filing status must be married filing jointly, head of household, qualifying widow or single.
4. You must have a valid Social Security Number. You, your spouse (if filing a joint return) and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.
5. You must have earned income.
6. Married couples and single people without kids may qualify.
7. Special rules apply to members of the U.S. Armed Forces in combat zones.
8. You can visit the IRS Web site to estimate your credit online. You will see the results of your responses right away.
9. E-file programs will figure the credit for you.
10. Advanced Earned Income Tax Credit. You don’t have to wait until you file your tax return to receive your EITC. Advance EITC is a portion of the EITC that qualified workers may be able to receive in advance payments, added to their wages throughout the year.
Interested in finding out more? This tax tip was retrieved and abbreviated from http://www.irs.gov/newsroom/article/0,,id=106429,00.html
The Earned Income Tax Credit is for people who work, but have lower incomes. Here are some things you may not know about the EITC.
1. A quarter of all taxpayers that qualify don’t claim the credit.
2. If you qualify, it could be worth up to $4,800 this year. (For the EITC calculator follow this link http://apps.irs.gov/app/eitc2008/Forward_2008_Calc.do)
3. Your filing status cannot be Married Filing Separately. Your filing status must be married filing jointly, head of household, qualifying widow or single.
4. You must have a valid Social Security Number. You, your spouse (if filing a joint return) and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.
5. You must have earned income.
6. Married couples and single people without kids may qualify.
7. Special rules apply to members of the U.S. Armed Forces in combat zones.
8. You can visit the IRS Web site to estimate your credit online. You will see the results of your responses right away.
9. E-file programs will figure the credit for you.
10. Advanced Earned Income Tax Credit. You don’t have to wait until you file your tax return to receive your EITC. Advance EITC is a portion of the EITC that qualified workers may be able to receive in advance payments, added to their wages throughout the year.
Interested in finding out more? This tax tip was retrieved and abbreviated from http://www.irs.gov/newsroom/article/0,,id=106429,00.html
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