Keep Your Tax Bill As Low as Legally Possible: Only You Can Prevent Undue Tax Burdens

Keep Your Tax Bill As Low as Legally Possible: Only You Can Prevent Undue Tax Burdens

The earned income credit (EIC) is a tax credit for those who work and have earned income/Adjusted Gross Income (AGI) less than prescribed income limits based upon your filing status and number of qualifying dependents. Tax Credits usually means less tax owed/more money in your pocket. It mitigates the amount of tax you owe. The EIC may also generate a refund.

The general rules of claiming Earned Income Credit Include:

You cannot be Married Filing Separate.

You need to have a valid Social Security Number and have Earned Income from either wages or self-employment income.

You must be a U.S. citizen or resident alien.

You must be able to claim as a dependent a qualifying child who is under the age of 19 or a full time student who is under the age of 24 and who lives with you for over half of the year.

You must be the only one who can claim your spouse or your dependents as either a dependent or for Earned Income Credit Purposes.

To read more about the Earned Income Credit (EIC) and to be certain you qualify before claiming see IRS Publication 596. Working closely with your CPA to determine your eligibility requirements is essential to ensure you properly qualify.

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John Dillard, CPA of His CPA, PC (A Duluth GA CPA firm)

A Christian Atlanta CPA Firm: Never Underestimate the Long-Term Benefits.

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