The Earned Income Tax Credit is a method for low income taxpayers to get back more than they have paid in to the tax system.
It was signed into law by President Ford in the 1970s and expanded and lauded by President Reagan in the course of the 1980s as better anti poverty, better profamily, top-notch job creation measure to come out of Congress. There is a high incidence of fraud. Of course, others criticize it for redistributing income to ‘people who have never paid a dime in their lives’ but nevertheless ‘get a check from the government’. Generally, whenever giving them no ‘skin in the game’ in support of the typical good, conforming to a report by the Economic Policy Institute, a complaint is it eliminates the income tax liability of many ‘lowincome’ workers, thus, it’s claimed. Today, it’s viewed with skepticism. It’s essentially a reverse welfare system provided to people who earn wages or income through ‘selfemployment’.
Employers who do not pay a living wage to their employees benefit in It’s an interesting fact that the EITC supplements what they can’t otherwise provide for their children. Angela Andrews, CTEC, who prepared tax returns for HR Block in Windsor, CA, states, Wal Mart is right across the street. Now regarding the aforementioned fact… For single parents in dead end jobs with kids to raise, the EITC is a boon to their finances.
The EITC payout ranges from for a person with three or more qualifying children.
Except Married Filing Separately, you can be any filing status. I’d say if any, the credit amount is on a sliding scale and depends upon filing status, income level and number of dependent children. You must file a tax return to receive the credit. Besides, the IRS provides a Q A template on its website -EarnedIncomeTaxCredit Assistant that you can use to determine if you qualify.
you may receive a letter from the IRS asking you to send information to verify your EITC claim or to provide important information about your claim, just after filing. They is going to disallow your claim, So in case you do not. These are fairly standard letters. Although, be sure to file a state income tax return, even if you had no state withholding, So in case your state offers a EITC. Actually, actually, last year, California became the 26th state to allow it. Do not be alarmed. You can be eligible to receive additional funds. Many states also provide a Earned Income Tax Credit. Answer honestly and provide the information they request. BATS BZX RealTime Price. Market Data provided by Interactive Data. Powered and Implemented by Interactive Data Managed Solutions. Company fundamental data provided by Morningstar. Earnings estimates data provided by Zacks. Mutual fund and ETF data provided by Lipper. Economic data provided by Econoday. Dow Jones Company Terms Conditions.