RefundtalkTaxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may experience a refund hold. According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue these refunds before mid-February. The IRS expects the first EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards…
Category Archives: Earned Income Tax Credit
What you should know about the Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is an income tax credit given to low- and moderate-income workers through filing a tax return. It is a refundable tax credit, meaning that you will receive it if you are eligible even if you don’t have any tax liability. When you file your 2019 taxes next year, you could…
Earned Income Credit – How Does It Work?
The earned income credit (EIC) is one of the most beneficial credits for individuals with children or those that are low income. Created in 1975 as an incentive for people to work, this credit potentially translates to huge tax savings. As with many other credits, you may not claim the earned income credit (EIC), also…
Earned Income Tax Credit And Child Tax Credit – What Changed
Are you planning on claiming the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC) on your federal tax return this year? If yes, then you should know some things have changed since last year. Child Tax Credit The first thing you need to be aware of is that the Tax Cuts and…
Don’t Miss Out on Claiming the Earned Income Tax Credit This Year
The Earned Income Tax Credit (EITC) is a refundable tax credit given to taxpayers that earn a low-to-moderate income from a job or through self-employment. According to the IRS, around 25 million eligible filers received this credit in 2020 and the average EITC was approximately $2,461. However, many eligible taxpayers are missing out on this…
What Should You Do If Someone Claims Your Children On Their Tax Return?
No matter how hard you try to safeguard personal information, there is still a chance that someone could steal or otherwise misuse your dependent’s Social Security number. Often, the use of another taxpayer’s Social Security number is a mistake resulting from another filer transposing the numbers during filing, but it can also be the result…
Can You Claim a Baby Who Was Just Born on Your Taxes?
A lot of things change when you have a child. One of those things is your income tax regarding the deductions and credits you get. You can claim a baby who was just born on your taxes. To get the maximum tax benefit, get clued in on what steps to take and what deductions and…
Can My Boyfriend Claim My Child on His Taxes?
Everybody loves tax exemptions. They reduce the amount of your taxable income, which affects the amount of taxes you pay. You can take a personal exemption for yourself, and you get an exemption for each of your dependents. In some cases, you might qualify as your boyfriend’s dependent. He might even be able to claim…
Common Earned Income Tax Credit Errors!
Did you know about 27 percent of Earned Income Tax Credit returns are paid in error? According to the IRS, the five most common errors account for more than 60 percent of erroneous claims. Remember, EITC preparers have due diligence requirements or questions you must ask your client, to determine eligibility for the credit. Errors…
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