Earned income tax credit (EITC)
Some so many lower-income people use this credit every year. Even so, 25% of taxpayers who could be eligible for the Earned Income Tax Credit still fail to claim it, according to a report made by the IRS.
Some of them miss out on the credit only because the rules might be too complicated for them, while others aren’t even aware that they can qualify. The EITC is a refundable tax credit, so don’t confuse it with a deduction.
It has a maximum amount for all sorts of filing statuses, from $1,502 to $6,728. The credit is made to supplement wages for those people who have low-to-moderate income.
However, the credit doesn’t apply only to lower-income workers. There are tons of millions of workers and their families that were previously classified as “middle class”, which are now considered “low income”, either because they lost a job, took a pay cut, or even worked very little during the year.
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Thank you for sharing this informative information !!!
Can you really deduct reinvested dividends from your income tax?
Not this pertains to this article, but when is a dog considered a domestic animal and a cat isn’t in Ohio and require a license.