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The Earned Income Tax Credit Explained

People in a meetingEver wonder about what the Earned Income Tax Credit is? You just might qualify!

Essentially, the Earned Income Tax Credit, also known as the EITC, is way to help US citizens that work hard but still have lower income. What’s great about this credit is that it is a refundable credit. That means that even if you don’t owe taxes, you can get a refund of the credit.

The refund is a great way to start a savings emergency fund or pay down debt. You can qualify based on your income status and/or if you have qualifying dependents. Below is the criteria for being eligible for the EITC:

  • No children and your income is less than $14,590 if single, $20,020 if you’re married and filing jointly.
  • One child and your income is less than $38,511 if single, $43,941 if you’re married and filing jointly.
  • Two children and your income is less than $43,756 if single, $49,186 if you’re married and filing jointly
  • More than two children and your income is less than $46,997 if single, $52,427 if you’re married and filing jointly.

Just keep in mind that your children must have valid Social Security numbers and if you’re married, you cannot file separately. Give us a call today and we’ll help you determine your eligibility for the EITC! We want to make sure you get all that’s coming to you so you can give you and your family the financial security you deserve. It’s why we do what we do.

Do you have the support you need to manage your small business bookkeeping? Schedule a 30-minute appointment to speak with a local small business adviser.

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