The earned income tax credit has been helping low income earning individuals and couples for many years now. With the earned income credit, you can receive a credit up to several thousands of dollars depending on how much you earn and how many qualifying children you have. The earned income tax credit offers the highest amount in tax credits to individuals who have three or more children. The earned income tax credit earning threshold increases with more children. Couples with three or more children will have the highest income threshold. Many Americans could benefit from this tax credit but have no idea that it even exist.
The earned income tax credit actually consists of four different tax credit amounts. Although having children is not a criteria for claiming the credit, it will certainly increase the amount that you will receive significantly. The tax credit is for individuals who have no children, one child, two children, or three or more children. There are specific income thresholds for each tax credit. Each income threshold is increased by $5,000 if you are filing jointly. For more information on the earned income tax credit, check out the official IRS website.
Author: Greg Jackson