The earned income credit is often a confusing thing for some people. The fine line that separates whether or not you are eligible for a tax credit this upcoming tax season often fluctuates, so you can’t rely on your EIC every year to get more money back from the IRS.
It’s for this reason that the government developed the earned income credit table. Designed to help you figure out if you’re eligible for a credit or not, and if you are, how much of a credit you’re eligible for. Here are just a few things that this table can show you.
There are certain salary requirements that you have to meet in order to be eligible for earned income credit. In most cases, higher salary workers are not eligible for earned income credit. This table will show you the multiple levels of credit that people can qualify for, and the salary limit that comes with each level of credit.
There are a lot of other details that play into whether or not you qualify for earned income credit, including the number of children in your family, the value of your home, external income outside of your regular W-9, just to name a few.
The earned income credit table will give you fairly common situations where you would and wouldn’t qualify for an earned income credit on your 2012 tax return. It’s easy to get confused, so make sure to pay attention to these detailed examples, as they’ll help clear up most of the confusion that often comes with filing your taxes each year.
The EIC Table
Once you understand the requirements and have an idea of how they play out with the examples that have been provided, it’s time to review the table itself. Here you’ll see how your salary qualifies, and for how much credit you qualify for.
It’s important to remember that the EIC table changes from year to year, and about 15% of people who qualify one year, don’t qualify the next. Reading each portion of the table will help you understand the changes from one tax season to the next.
To learn more or to claim the credit, please visit, http://www.claimtheearnedincomecredit.com/