Saving on your taxes can be as easy as finding money saving credits and deduction. The earned income tax credit is just one of many tax credits that are available to American tax payers. This tax credit, like all other tax credits, is a direct reduction of your tax liability dollar for dollar. The earned income tax credit is available to many individuals and couples who meet certain income requirements. Although having children is not a requirement for receiving the earned income tax credit, the amount that you receive will significantly increase for each child that you have.
There are four different amounts given by the earned income tax credit. Each amount is subject to the number of qualifying children that you have and the income of you and your spouse (if applicable). The lowest amount given by the earned income tax credit is $457 and you may be eligible if your adjusted gross income is less than $13,440. The second credit is given to individuals or couples that earn an income of $35,463 or less. This credit is worth $3,043 and you must have one child to qualify. The third credit is a whopping $5,028 and is given to individuals who make less than $40,295 and have two children. The last credit, and the largest of the four, is given to individuals with three or more children. This credit is worth $5,657 and your income must be less than $42,279. The income limitations that were just mentioned can be increased by $5,000 each if you are married and filing jointly.
The earned income tax credit has been helping American families for years by decreasing their tax liabilities and often increasing the amount of money that they receive on their tax return. If you are interested in receiving the earned income tax credit, visit the official IRS website for more details.
Author: Abdullah Patel