- February 16, 2018
- Posted by: irstaxfighters
- Category: Tax preparation strategies, Tax relief
Many people feel they do not qualify for the Earned Income Tax Credit so they do not apply. The IRS is encouraging people to apply, especially those people who lived in the areas affected by Hurricanes Harvey, Irma and Maria.
The IRS is allowing those people who lived in the areas affected by the hurricanes and whose income decreased in 2017 to calculate their EITC in a special way. The IRS is allowing these people to use either their 2017 or 2016 earned income to determine their Earned Income Tax Credit on their 2017 income tax return, and use whichever results in a higher EITC. So if you lived in the areas affected by the hurricanes and your income decreased in 2017, then you would calculate your 2017 EITC twice, once with your 2017 earned income and once with your 2016 earned income. You would then use whichever one resulted in the highest EITC.
The EITC is available to those people whose income is $53,930 or less and meet other IRS eligibility requirements. The EITC can result in a refund as high as $6,318 for a working family with qualifying children, and a refund as high as $510 for an individual with no qualifying children.
The person must have “earned” income in order to qualify for the credit. The earned income can come from working for someone, self-employment, running a business, or running a farm.
In order to get the EITC, you must file a tax return even if you don’t owe any taxes. The EITC is a refundable credit which means that you can get a refund as a result of the EITC even if the refund is more than the amount of taxes you owe for the year.
Call IRS Tax Fighters today at 888-959-2671 for your tax preparation and tax relief needs.
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