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Hi, I'm Patrice Washington a personal finance columnist, bestselling author
and national ambassador for MyFreeTaxes Did you know that the Earned Income Tax Credit
or EITC as you've probably heard it called can put a little more than $6,000
or more into your or your family's pocket?
Yeah, you heard me $6,000.
But 1 in 5 Americans who are eligible for the credit don't claim it.
So are you-- or someone you know, missing out?
Today I want to teach you four easy ways you can check your eligibility for EITC.
#1- Did you work, or were you in-between jobs in 2014?
If so, your new financial situation just may allow you
to receive the EITC for the first time.
In order to qualify for the credit though, you need to have earned income.
Now, there are essentially two ways to get earned income: First, You work for someone
who pays you OR second You own or run your own business.
Some examples of earned income include wages, salaries, tips, other types of employee pay
and even net earnings from being self-employed.
So, the bottom line is here IF you worked last year, then you might be eligible for EITC.
Now, #2 - Are you a parent, did you have a child last year,
or are you raising a child that maybe isn't your own?
New parents, grandparents raising grandchildren and foster parents are among the largest group
of taxpayers who commonly miss out on claiming EITC.
But guess what?
It doesn't stop there!
The IRS has qualifying child rules that can even extend to younger siblings, you may be raising,
step children, maybe even nieces and nephews, as long as the children live with you for more
than half of the year, you just might qualify.
So, if your family grew last year or if you're a noncustodial caretaker...
you may qualify for even bigger tax return by claiming the EITC this year.
#3 - Do you or someone in your family have a disability?
It's really important that you know that there are some disability benefits
which actually qualify as earned income in order for you to claim the EITC,
so make sure aware of what you're qualified for.
And #4 - Do You typically not file taxes because your just not required to?
This is another big one because many Americans miss out on EITC each year
because they falsely believe that, just
because they don't owe taxes, they shouldn't file a return.
And that simply not true.
The truth is that you have to file a tax return in order
to determine your eligibility to claim the EITC.
So, Even if you believe your earnings fall below the tax filing requirement
OR if you believe you don't owe anything at all, I really suggest filing anyway.
Because remember, the EITC can bring a little more than $6,000 back into your household.
This credit is all about helping you keep more of your hard-earned money,
but you can't get the credit if you don't file!
Now qualifying for the EITC does depends on some additional basic guidelines,
like your income level and even your family size, so if any of these examples sound
like your situation, Please go to MyFreeTaxes.com and use the EITC calculator
to help you figure it out because you need to know IF you indeed qualify.
Remember, MyFreeTaxes has a filing process that's easy and the software guides you
through a simple step-by-step process.
And it includes help from IRS-certified specialists who'll be able
to give you telephone support, email support and even an online chat.
So head over to MyFreeTaxes today and find out if you qualify for the EITC.