First comes love, then comes marriage, then comes a baby… and the Earned Income Tax Credit?
Here’s one for the next round of Jeopardy: the Earned Income Tax Credit or EITC was designed to offset the burden of Social Security taxes paid by low to middle income working families.
And here’s one you can take to bank: if you find yourself struggling to provide for your family you may qualify for the EITC and increase your refund at tax time .
Whether you qualify, not to mention the amount of the credit you’ll receive, depends on your income and how many qualifying children you’re supporting.
Eligibility is based on your income and your filing status
First, in order to qualify, you must file your tax return as married filing jointly. Your filing status can not be filing separately.
Second, your income earned (that is, the wages you received from your job or the net profits you made from self employment), can not exceed a certain threshold.
If you’re married filing jointly, your 2014 adjusted gross income, must be less than:
- $52,427: 3 or more qualifying children
- $49,186: 2 qualifying children
- $43,941: 1 qualifying child
- $20,020: no qualifying children Continue reading “Earned Income Tax Credit Tips for Married Filers”