10-30-2018 Traverse City MI - The Earned Income Credit was passed in 1975 and is today one of the most successful tools in helping working families with a low to moderate income fight poverty. But recent research by an independent tax policy research Organization, The National Tax Report has shown that nearly one in four Americans who are eligible for this tax credit do not know they can claim it. To help curb this development and encourage more low to moderate income families claim The Earned Income Credit (EIC), The National Tax Report has just published the Earned income tax credit table on its website.
The purpose of the table is to help individuals calculate the amount of earned income credit they can claim in the tax year 2018. The table provides in clear detail how much credit each individual can earn based on the number of dependents they have and their total gross income. The credit will increase as the number of dependents claimed on the tax return increase but will reduce as the total gross earned income of the filer increase. There is also more information on the site detailing who qualifies for the Earned Income Credit and what set of individuals can benefit the most from it. The EIC provides support for low and moderate-income working parents (with qualifying children) in the form of tax credits. As depicted on the table, the tax credit is not as beneficial for individuals without children as it is for those having children but not having children is no reason not to claim the EIC. Individuals who qualify for the EIC can claim it using Form 1040 which is a percentage of the individual’s earnings up to a certain maximum limit.
For more information and to see how much credit you can claim on your tax return, please visit https://nationaltaxreports.com/earned-income-credit-eic-table