The earned income tax credit can give qualifying workers with low-to-moderate income a substantial financial boost. In 2019, the average amount of this credit was $2,476. It not only reduces the amount of tax someone owes but may give them a refund even if they don't owe any taxes or aren't required to file a return. People must meet certain requirements and file a federal tax return in order to receive this credit.
A taxpayer's eligibility for the credit may change from year to year, so it's a good idea for people to use the EITC Assistant to find out if they qualify.
Eligibility can be affected by major life changes such as:
Taxpayers qualify based on their income and the filing status they use on their tax return. The credit can be more if they have one or more children who live with them for more than half the year and meet other requirements.
There's a new rule to help people impacted by a job loss or change in income in 2020. Taxpayers can use their 2019 earned income to figure their EITC, if their 2019 earned income was more than their 2020 earned income. The same is true for the additional child tax credit. For details, see the instructions for Form 1040.
The maximum credit amounts are based on whether the taxpayer can claim a child for the credit and the number of children claimed:
Those who are working and earn less than these amounts may qualify for the EITC:
Head of household and single:
Taxpayers who are married filing separately can't claim EITC.
Contact: 📞281-861-7718 📍4654 Hwy 6, Houston, TX 77084
Source: IRS
Alfredo Gaxiola has worked on numerous IRS problem cases and has successfully settled with the IRS to release liens on houses, bank accounts and wages and, if needed, setting a payment installment plan that is not burdensome for the client. He has conducted appeals before the U.S. Tax Court and obtained favorable resolutions in reducing the tax debt of his clients. Mr. Gaxiola served as Treasurer of Camara de Empresarios Latinos, one of the largest and strongest Hispanic organizations in the city of Houston. He has conducted financial and accounting seminars for the Houston Small Business Development Corporation, as well.
Certified Public Accountant in Houston, Alfredo Gaxiola CPA in Houston, Certified QuickBooks Proadvisor in Houston, QuickBooks Set Up and Training in Houston, Business Tax Return in Houston, Personal Tax Returns in Houston, Quarterly & Monthly Filings in Houston, Financial Statement Preparation in Houston, Consulting Services in Houston, Payroll Preparation in Houston, Bookkeeping Services in Houston, Bank Financing in Houston, IRS representation in Houston
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