The Examiner.com author reveals how taxpayers can take advantage of the earned income credit in 2015, and explains how people can determine their eligibility.
Traverse City, MI -- (SBWIRE) -- 01/20/2015 -- Tax specialist and Examiner.com contributor Frank Ellis has published an informative article on how taxpayers can claim the earned income credit this year. People with a small or modest income can qualify.
The author reveals the credit was established to counterbalance Social Security taxes and give low-income workers an incentive to work.
A refundable credit, the EIC allows people to decrease their taxable income, according to Ellis. Many may actually get a tax refund. This is based on one's income and allowances set according to the taxpayer's cost of living, the author reveals.
The article also details how someone can know if they are eligible. These points are summarized in order for people to know their entitlement. In addition, the author explains the qualifications for children. Including citizenship, relationship, and age, the child qualifiers are outlined in a set of guidelines featured in the article. It also points out what happens if more than one person claims the same child.
Another section explains how to determine the credit amount. The 1040 booklet is identified as a good source for determining the amount one owes and includes an earned income credit worksheet. Correct information entry when filing a Schedule EIC is touched on, while an alternative is revealed in which the IRS calculates the amount automatically.
Variability in the EIC is affected by how many qualifying children there are and the taxpayer's earned income. The author also highlights TurboTax. With a few simple questions, one can instantly know if they qualify for the credit and the software will even calculate the amount. This, and online tax refund calculators, help people know right away whether they owe the IRS or will get a refund.
For more information, go to http://www.examiner.com/article/claiming-the-eic-earned-income-credit-2015-explained
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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