It is time to start filing those financial documents for your tax returns again, and finding professional tax services in Kissimmee, Orlando, and Hunters Creek FL. Family members and individual taxpayers are scrambling to get their financial documentations in order before tax season.
But did you know that you can also apply for a refundable tax credit in the form of an EITC?
What is EITC?
EITC stands for Earned Income Tax Credit. This is a refundable tax credit that is only applicable for families, individuals or couples who earn medium to low wages. The EITC is designed to maintain an incentive to work by decreasing the burden of security taxes for all those who are eligible to apply for it.
Needless to say the Earned Income Tax Credit has made living a lot easier for low income families and individuals since it was first introduced. However, according to the IRS a lot of eligible taxpayers still fail to claim their EITC each year during tax season. If you think you apply keep the following in mind before going for an EITC –
Are you Eligible?
The first step for taxpayers to determine whether they qualify for EITC is to figure out whether their marital, financial or parental situations change every year. It’s best that you review EITC qualification rules before proceeding any further. You might be eligible to apply this year even if you weren’t the year before.
There are certain other conditions that also apply like –
- If your tax filing status is Married Filing Separately then you are not qualified for EITC
- Taxpayers who are married or individuals without children might be able to qualify. Age and residency requirements or dependency rules can also be referred to if you do not have qualifying children.
- Taxpayers who are looking to qualify must have valid social security numbers for themselves as well as their spouses in the case of filing joint tax returns.
File your Tax Returns
Taxpayers who qualify must file a federal income tax return. They will not be able to claim the credit otherwise even if they are not required to file tax returns. The process also involves including earned Income Credit or Schedule EIC when filing form 1040.
Of course there are also other ways through which you can make tax season easier on yourself. For example there are certain types of income that are tax deductible like –
- Bequests, gifts and inheritances
- Welfare benefits
- Child support payments
- Reimbursements for qualified adoption expenses
- Damage awards for sickness or physical injuries
- Cash rebates from a manufactures for purchased items
However, nothing compares to the expertise of an accountant. If you know a qualified CPA (Certified Public Accountant) it would be best to seek his/her advice before filing tax returns or qualifying for EITC. Who knows? You might be in for a lot more credit that you thought. Plus an accountant might also alert you from making any financial blunders while filing tax returns or qualifying for EITC.
If you need more information about income tax preparation services in Kissimmee, Orlando, and Hunters Creek FL, please contact us at 407-344-1012. God bless.