The Earned Income Credit is a credit that many low income people receive. It is quite a substantial credit that can help if you have a low income.
This credit can reduce your taxes, and can mean a refund. If you normally did not qualify for this credit in the past, you may want to review your situation this year as you may now qualify if you have had any changes in income or family size.
If you do qualify your credit could be worth up to $4,800.00. So it is worth double checking your return to see if you qualify. There are a few stipulations for this earned income credit:
1. You must be married and filing jointly, head of household, qualifying widow, or single. You may not file separately.
2. You, your spouse, and any qualifying children must have valid social security numbers.
3. You must have earned income. This also applies if you are self-employed.
4. You may still qualify even if you do not have children.
5. You must be a U.S. citizen.
6. You cannot be a qualifying child on someone else’s return.
7. Qualifying children must be under the age of 18 by the end of the tax year unless they are a full time student.
The amount will vary depending on your income levels and family size. This amount will be figured automatically for you if you use some type of online tax preparation service such as TurboTax Online. TurboTax offers the tools for you to calculate your estimated earned income credit amount.
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