Earned Income Tax Credit


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Earned Income Tax Credit

Also called the EITC. A dollar-for-dollar reduction in the tax liability for lower and middle income persons in the United States. The credit is applied against taxes owed on wages, salaries, tips and other forms of earned income. Investment income is excluded and one may not have more than a certain amount of investment income to be eligible for the credit. Households with children may receive larger credits. The EITC is refundable, meaning if the credit causes one's tax liability to go below zero, one receives the difference from the IRS.
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By 2002, almost a quarter of all Chicago taxpayers got the earned income tax credit, compared with 17 percent in 1999, shows a Chicago Reporter analysis of Internal Revenue Service data.
To download NLC's toolkit for municipal leaders on Maximizing the Earned Income Tax Credit, visit www.
But many people don't realize that the Earned Income Tax Credit does not count as income in determining eligibility for benefits like cash assistance, Medicaid, food stamps, SSI, or public housing.
And although Sperling praises the Earned Income Tax Credit because it puts money in the hands of poor families that they can spend as they see fit, he is not averse to less flexible programs that offer specific services.
For more information on the Earned Income Tax Credit, child Tax Credit or other tax issues, contact a unit tax advisor or finance office.
Baker has argued against keeping the tax credit, saying the state should instead double the earned income tax credit to help low-income working families.
30, 2014 /PRNewswire-USNewswire/ -- In recognition of Earned Income Tax Credit (EITC) Awareness Day on January 31, and throughout the tax filing season, Goodwill Industries International is partnering with the Internal Revenue Service (IRS) to assist people around the country who may qualify to file for the tax credit.
creator of TurboTax software and a member of the FreeFile Alliance, launched a free mobile app that calculates earned income tax credit eligibility on the spot.
FIANNA Fail Finance spokesman Michael McGrath said the Budget's earned income tax credit falls well short of equality for non-PAYE income earners.
The State Community Services Office is accepting proposals to plan and implement a statewide campaign to qualify households for the Federal IRS Earned Income Tax Credit (EITC).
Those who wish to claim the Earned Income Tax Credit and have tax preparation done must have earned income from wages or self employment, and have a Social Security number.
The toolkit, entitled, "Maximizing the Earned Income Tax Credit in Your Community: A Toolkit for Municipal Leaders," highlights steps that local elected officials from across the country have discovered to strengthen families while bringing more federal dollars into the local economy by connecting eligible workers to the Earned Income Tax Credit.