Earned Income Tax Credit is the name of the biggest refundable income tax credit that many common taxpayers can apply for. For people with children, this refundable large amount of money can mean the difference between an empty cookie jar and enough cookies to share with the other neighborhood children who drop in to play after school. With today’s economy so unsettled, people with children need to apply for this money.
The best place to prepare the IRS income taxes is online today. Tax preparation sites offer the quickest refunds and their software programs always ask users if they qualify for the Earned Income Tax Credit (EITC) by asking the user a series of questions. Never skip this set of questions because the refund is worth up to $5,657 dollars to the taxpayers who meet all of the requirements to receive this much money.
To qualify for the Earned Income Tax Credit, taxpayers must have children living under their roof for at least six months in time out of the tax year. Or, they must meet lower income requirements that are set into a range that allows many taxpayers to benefit from. Taxpayers do not need to be the parents of the children who are living in their homes, and Foster Care arrangements do qualify to receive this money if they are agency placements.
United States citizens (and non-citizens) may apply for the EITC tax money if they have a valid social security number for themselves and all children claimed. The children must live with the taxpayer at least six months out of the year, and when there is a tie with another taxpayer having the child exactly six months out of the year too, the parent or closest relative is the one who claims the Earned Income Tax Credit on their paperwork.
The children who are claimed for the EITC tax money must be under the age of 18 years unless they are a full-time student. Taxpayers may claim a young adult student as a child up to age 23 for the Earned Income Tax Credit age requirement. Taxpayers who are married may not file for an EITC credit unless they are filing jointly with their spouse on their income tax returns.
Taxpayers without children can get up to $438 in EITC money. Those with one child to claim can get up to $3,043, those with two children can get up to $5,028, and those with three or more children can claim up to $5,657. When the tax return is done being prepared online, if the taxpayer uses the e-file option, this return is sent directly into the IRS computer system and the Earned Income Tax Credit money that is being issued on a refund will be available in your bank account as quickly as 8 days later in some cases.
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