Wednesday, October 21, 2009

How does earned income tax credit work??Do you automatically get it?What do you have to do to get it??

Eligibility is based on earned income, number of qualifying children, and your age if you don't have children, and your filing status. Earned income is generally something job-related.





Income limit is a little over $12K if you don't have children. You must be between age 25 and 64.





If you have one qualifying child, the income limit is a little over $36K. With two or more, it's a little over $38K. With children, you don't have to be at least age 25.





A qualifying child lived with you over half the year, and be under 19, or under 24 and a full-time student, or disabled.





This is just a summary and doesn't cover every detail - if you meet the above requirements, read the section on EIC in the instruction booklet for more detail.





If you are eligible, there is a table that says how much you get depending on filing status, your earned income, and number of qualifying children.

How does earned income tax credit work??Do you automatically get it?What do you have to do to get it??
you have to earn under 36,000 in a yr. to get this credit.
Reply:To qualify you must be the head of the household, (your income supports it) have at least one dependent, (a child or a disabled person) and have an income at or lower than the government's poverty standard. You don't get it unless you file for it.





Your local IRS office will answer any questions about it, even do you taxes for you, completely free, but you might have to make an appointment weeks in advance. Better than making a mistake that comes back to haunt you, though.


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