Did you know that you are able to claim a huge tax credit if you earn a lower income and have children. The federal government is looking out for the American people when it developed the Earned income credit. You may be wondering if you qualify for the earned income credit. Healthy Financial Habits is here to give you the inside scoop on what the earned income credit is and how you can qualify.
The earned income credit was designed to help out working families that earn a lower income. It is a tax credit that is refundable and can put hundreds or thousands of dollars back into your pocket depending on how many children that you have and how much money you make.
The earned income credit will give tax filers a credit of $457 if you have no children and your adjusted gross income is less than $13,400. If you have one child and your income is less than $35,463 you could qualify for a credit up to $3,043. If you have two children then the credit increases to $5,028 with an income max of $40,295. Finally, if you have 3 or more children and make less than $43,279 you may be able to qualify for a tax credit in the amount of $5,657. Also, if you are filing jointly, the income limits are all increased by $5,000.
To find out more information on the earned income tax credit, check out the official IRS website. Healthy Financial Habits is here to give you tax tips and make you aware of all of the great tax advantages that are available to you this year.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: John Zinsky