The Earned Income Credit (EIC) is a tax credit designed to help low-income workers and families. It is a refundable credit, meaning that if the credit amount is more than the amount of taxes owed, the taxpayer will receive the difference as a refund. The EIC is a great way for low-income workers to get a financial boost and help make ends meet.
The EIC is available to taxpayers who meet certain income and filing requirements. To qualify, taxpayers must have earned income from wages, self-employment, or farming. The amount of the credit depends on the taxpayer’s income, filing status, and number of qualifying children. The maximum credit amount for 2020 is $6,660 for taxpayers with three or more qualifying children.
The EIC is a great way for low-income workers to get a financial boost and help make ends meet. It is important to understand the eligibility requirements and how to claim the credit. Taxpayers should also be aware of the potential pitfalls of claiming the EIC, such as the risk of an IRS audit.
If you think you may qualify for the EIC, it is important to Give us a call to ensure that you are claiming the credit correctly and maximizing your benefit.