The Internal Revenue Service (IRS) estimates only 75 to 85 percent of those eligible for the credit actually claim it. The American Tax Relief Act of 2012 extended the EITC for several provisions until December 31, 2017.
Because the EITC is a refundable credit, it can reduce or eliminate tax liabilities for eligible wage earners with and without children. Claiming the EITC has no effect on welfare benefits, food stamps or low income housing eligibility.
The adjusted gross income (AGI) limits for the earned income credit and maximum available refund amounts for 2013 are less than:
• $46,227 ($51,567 married filing jointly) with three or more qualifying children
• $43,038 ($48,378 married filing jointly) with two qualifying children
• $37,870 ($43,210 married filing jointly) with one qualifying child
• $14,340 ($19,680 married filing jointly) with no qualifying children Tax year 2013 maximum credit:
• $6,044 with three or more qualifying children
• $5,372 with two qualifying children
• $3,250 with one qualifying child
• $487 with no qualifying children
Active duty military who served in a combat zone may elect to include nontaxable combat pay in earned income to figure the earned income credit, if this increases their benefits.
In order to claim the EITC, the taxpayer must be working, not claimed as a dependent, at least 25 years old (if no qualifying child) but under 65, and have lived in the United States over half of the year. Filing status cannot be married filing separately.
Grandparents as well as parents may be eligible to claim dependents for EITC if they meet the criteria. For dependent children to be claimed for EITC purposes –
• The child must be under 18, but can be under 24 if they are a full-time student
• The dependent must be related to the taxpayer who has lived with the eligible taxpayer for over half of the year
• A totally disabled person may be claimed as a dependent for EITC regardless of their age.
On a separate note, Liberty Tax Service is Celebrating its Grand Opening in Lawrenceville. We are located at 1575 Lawrenceville Highway, Lawrenceville, GA 30044, and our business hours are from 9am to 9pm during tax season.
Liberty Tax Professionals nationwide provide FREE ITIN (Tax ID) application services for the Hispanic community in keeping with the company’s HISPANIC SERVICES SEAL OF EXCELLENCE certification.
The ‘Cash in a Flash’ promotion, our most popular promotion, starts now and ends on February 16, 2014. In a nut shell … You come in, do your taxes with us and I will hand you $50.00 cash on the spot.
In addition to that, every customer you refer to me, I will hand you $50.00 cash on the spot each referral, our ‘Send A Friend’ program.
There will be a Roadside Party Event on January 11, 2014 from 12pm to 3pm at this location. Tax professionals will be on-hand to provide free tax advice. We can also start your tax process with your last pay check stub. Lady Liberty will be on site serving hamburgers, hot dogs and refreshments. Lady Liberty will also have foam crowns for all the children who attend and much more. Hope to see you there.