Earned Income Tax Credit is primarily a refundable tax credit that is meant for couples and individuals with qualifying children. These couples and individuals must be working and have low wages.
This concept was started in the year 1975. The main idea behind this concept is to provide financial relief to Americans who are earning meager wages. The number of children will help decide how much amount should be given. Even those who dont have children can avail EITC provided that they earn less than a certain amount every year.
There are, however, requirements that must be met before one is eligible for EITC. However, these requirements change every year, thus it would be wise to keep track of them.
In the year 2010 the maximum refund that one can receive from the government is $ 5,666. However to get this amount one must have three or more qualifying children. Those who have two qualifying children will receive a maximum of $ 5,036 while those with one qualifying child will receive a maximum of $ 3,050. Those with no qualifying children will get a maximum of $ 457.
Those individuals who have with them 3,100 dollars that they can invest dont qualify for this refund. Couples who file their tax returns separately are not eligible for EITC.
The requirements for a qualifying child are
Have a valid Social Security Number
Must be related to person applying for ETIC
Child
Stepchild
Adopted child
Foster child
Grandchild or Great-Grandchild
Siblings
Step siblings
Descendants of either siblings or step siblings.
Age of the child
Must be younger than the applicant
Below 19 years.
Between 19 and 24 and must be a full-time student.
No age limit if the child is permanently and totally disabled.
The child must have resided in the for more than six months of the year.
The child and its spouse cant file a joint return, unless they are not required to file and did so only to claim a refund.
A qualifying child can be claimed by only one person. In the case of two or more individuals claiming the same child, IRS has some tiebreaker rules to solve the problem.
Author recommends check out more reviews on online taxes and rapid refund
This concept was started in the year 1975. The main idea behind this concept is to provide financial relief to Americans who are earning meager wages. The number of children will help decide how much amount should be given. Even those who dont have children can avail EITC provided that they earn less than a certain amount every year.
There are, however, requirements that must be met before one is eligible for EITC. However, these requirements change every year, thus it would be wise to keep track of them.
In the year 2010 the maximum refund that one can receive from the government is $ 5,666. However to get this amount one must have three or more qualifying children. Those who have two qualifying children will receive a maximum of $ 5,036 while those with one qualifying child will receive a maximum of $ 3,050. Those with no qualifying children will get a maximum of $ 457.
Those individuals who have with them 3,100 dollars that they can invest dont qualify for this refund. Couples who file their tax returns separately are not eligible for EITC.
The requirements for a qualifying child are
Have a valid Social Security Number
Must be related to person applying for ETIC
Child
Stepchild
Adopted child
Foster child
Grandchild or Great-Grandchild
Siblings
Step siblings
Descendants of either siblings or step siblings.
Age of the child
Must be younger than the applicant
Below 19 years.
Between 19 and 24 and must be a full-time student.
No age limit if the child is permanently and totally disabled.
The child must have resided in the for more than six months of the year.
The child and its spouse cant file a joint return, unless they are not required to file and did so only to claim a refund.
A qualifying child can be claimed by only one person. In the case of two or more individuals claiming the same child, IRS has some tiebreaker rules to solve the problem.
Author recommends check out more reviews on online taxes and rapid refund
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