The Earned Income Tax Credit (EITC) is a great way for low and moderate income families and individuals to recoup some of their federal income tax owed. You don’t need to have your employer sign you up for the EITC. There is an app on the IRS website to help determine your eligibility for the tax credit and the amount of credit you can receive from claiming the EITC.
EITC – Earned Income Tax Credit EligibilityTo determine eligibility for the EITC, you should use the official IRS Earned Income Tax Credit app at http://apps.irs.gov/app/eitc2011/. This app helps determine if your children are considered qualified for tax purposes and also helps determine the amount of the tax credit you will receive. To use the app, you will need the following information:
- The social security numbers for all family members.
- Your filing status: single, married filing jointly, qualifying widower with dependent child or head of household.
- The amount of income you earned during the tax year.
Other Tax CreditsTax credits like the EITC can take the bite out of paying your taxes since each credit gets deducted from the final tax amount that you owe. There may be many tax credits available to you depending upon your situation. Here are some common tax credits to help lessen your tax burden even more:
- Energy Tax Credits (like you would get for purchasing an electric car).
- A first-time home buyer’s tax credit.
- Educational tax credits.
- Child tax credits.