If you or someone you know have low-to-moderate income, you may qualify for the earned income tax credit – which means you get some money back in your wallet!
In fact, last year the average credit was $2,445, according to the IRS newsletter. This tax credit may not only give you money back, but may even reduce the amount of tax that you owe. Now that’s a credit worth looking into!
Depending on your life circumstances changing, you may qualify for this credit at some points of the year and not qualify for other times of the year. To qualify, you need to file a federal tax return, even if you don’t owe any tax. Qualifying for this credit really depends on circumstances such as: how much you earn annually, your filing status, and how many children you have. To claim a child, they must live with you for at least six months out of the year.
How to Qualify:
(Facts obtained from the IRS)
If you are married and are filing jointly, your income must not exceed:
-If you and your spouse have zero children: $21,370
-One child – $46,884
-Two children – $52,493
-Three or more children – $55,952
If you are single and head of the household, your income must not exceed:
-If you have zero children – $15,570
-One child – $41,094
-Two children $46,703
-Three or more children – $50,162
If you qualify for this credit, you will receive money back. The amount is the same for all filing statuses:
-Zero children – $529
-One child – $3,526
-Two children – $5,828
-Three or more children – $6,557
If you have any questions about the earned income tax credit, please reach out to us #GoldenGirls at Gold Standard Tax & Accounting.