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TaxMan123.com
United States of America IRS Tax Information
EIC or EITC - Earned Income Credit
A Refundable Tax Credit
People who are low to modrate income earners, couples and those with children who are in the lower income brackets are more likely to qualify. The amounts earned for qualification change every year.
EIC is costly to the taxpayers who are supporting it. Recently it cost all Americans in the area of 70 Billion dollars for a year.
Qualifying Requirements
If you or you and your partner want to claim one or several people as your qualifying children you have to pass certain qualifying requirements. Their residency, age and relationships must pass the muster to get you in.
Relationships
There are several specific requirements to follow such as a qualifying person could be a son, daughter, stepchild, grandchild, great grandchild, sister, brother, half sister or half brother.
Also they could be a step sister or step brother or a neice, nephew, great-nephew, etc. as you can see there are relationship requirements that are not even mentioned yet here.
Adoption is part of the requirements in some cases as long as the child has been legally placed. Foster children can qualify as well as long as they are legally placed in the home.
If you are claimed by someone, let's say your parent then you can not claim an EIC yourself.
It gets complicated... However, a married couple who is claiming EIC with a child, even if one or both of the spouses are under 19 years of age can be legitimate for EIC.
You can get a lot more information from the IRS at Publication 596.
The numbers and amounts change every year so google that one.
Why We Exist
We want you to be more informed.
A lot of people break out in a nervous sweat and get the shakes when it comes time to file their taxes.
The first time that I tried to file by myself left me with a feeling of confusion because I did not bother to read any information about how to go about it in a fair way, a way that didn't leave me broke and living in a cardboard box in the alley.
I just had at it without reading anything and it was overwhelming. I assure you that after all these years I won't get into a difficult situation like that without any proper info and good forms to file.
Some folks just file as fast as they can to get it over with. They loose out on a bunch of legitimate deductions and allocations that could have saved them a ton of money at tax time.
I would rather be getting a nice tax refund than pay the IRS a lot of money. Pay attention to the details.
