earned income tax credit (eitc) 1. what is a tax credit credits are designed to offset tax liability...
Post on 30-Dec-2015
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Earned Income Tax Credit (EITC)
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What is a Tax Credit• Credits are designed to offset tax liability• Refundable credits• Nonrefundable credits
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EITC Rules• Taxpayer with kids:
o Kids must pass three tests (similar to QC test):• Relationship Test• Age Test• Residency Test• *No support test!
• Taxpayers without kids:o Taxpayer or Spouse must be 25 to 64o Cannot be claimed on another’s returno Live in the US for more than 6 months
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EITC Income Limits
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Unmarried Married Filing Jointly
Number of Kids
$46,997 $52,427 3
$43,756 $49,186 2
$38,511 $43,941 1
$14,590 $20,020 0
Maximum Credit
Maximum Credit Amount
Number of Children Claimed
$6,143 3
$5,460 2
$3,305 1
$496 0
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EITC and Dependents
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• Check EITC box if dependent is eligible
TaxWise
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