Where Can I Find an Earned Income Credit Calculator?
With the new earned income credit calculator, it couldn’t be easier to find out how much you could be owed this year. Use the earned income credit calculator and just answer a few questions to get an estimate of how much you could be entitled to.
It’s a step-by-step calculator with clear instructions, so anyone can use the earned income credit calculator.
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What is the Earned Income Tax Credit?
The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate-income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. The EITC reduces the amount of tax you owe and may give you a refund.
How Much is the Earned Income Credit?
The EITC is based on how many children you have and how much you make per year. The maximum amount you can get from this credit is $6,660 for the tax year, which is a moderate increase from previous years. However, most people won’t be able to claim the full tax credit.
It’s important to note that low-income families with no children can also take advantage of the EITC. Single taxpayers need an income of below $15,820, and married taxpayers filing jointly need an income of under $21,710.
How to Claim the Earned Income Credit
The EITC is considered one of the most valuable tax credits for Americans with families because it’s fully refundable.
The chances are if you qualify for this credit, your Federal tax bill won’t be high and may even be as low as zero when other credits and deductions are considered. So, it could be worth thousands of dollars to you this tax season.
To claim the earned income tax credit, first, you should use the earned income credit calculator to find out how much you could be entitled to.
The next step is to make sure you claim the earned income credit when you file your Federal taxes.
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Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for twelve years and has published over 1000 articles on leading financial websites.