Earned Income Credit Missed by Many
One of the best tax credits available today is the Earned Income Credit but many individuals don’t claim it even when they qualify. These individuals may not have qualified last year but their financial, marital, or dependent situation may have changed making them now qualified.
The tax credit maximum is $5,657 this year and depends on your income and how many dependent children you have in your household. Plus the credit is refundable, which means you can get a refund above the tax your into the treasury during the tax year. Make sure not to file separately from your spouse as this will disqualify you automatically.
Having a valid social security number and earned income are two important first steps. And combat pay is considered earned income for qualify for the earned income tax credit. The easiest way to determine if you qualify is by using the EITC assistant at the IRS.gov website. Make sure to apply for this tax credit when you file your taxes if you determine that you are qualified.
- Fast Tax Refund? Find out How (2008taxes.org)
- TurboTax Presents Overlooked Tax Deductions (2010tax.org)
Earned Income Credit Missed by Many by Steve