The earned income tax credit benefits working people with low-to-moderate income. Last year, the average credit was $2,445. EITC not only reduces the amount of tax someone owes, but may also give them a refund, even if they don’t owe any tax at all.
Here are a few things people should know about this credit:
Here’s a quick look at the income limits for the different filing statuses. Those who work and earn less than these amounts may qualify.
Married filing jointly:
Head of household and single:
The maximum credit amounts are based on the number of children a taxpayer has. They are the same for all filing statuses:
Taxpayers who file using the status married filing separately cannot claim EITC.
Publication 5334, Do I Qualify for EITC?
Share this tip on social media — #IRSTaxTip: The earned income tax credit can put money in taxpayers’ pockets. https://go.usa.gov/xVAvr
Taxpayers who received an extension to file their 2018 tax return might have questions. They should remember that help is just a few clicks away on IRS.gov. Here are some of the tools and resources they may find useful. Researching a tax question The Interactive Tax Assistant asks a series of questions and provides answers […]