Enacted in 1975, the Earned Income Credit (EITC or EIC) is a refundable tax credit to working individuals who may have low to moderate income. The amount of EIC depends on income and the number of children a person has. Below is a chart that breakdown the number of children, income and EIC for a family…
|Number of children:||Single workers with income less than:||EITC up to:|
|3 or more children||$47,955||$6,269|
Being that EIC is a credit, it’s credited to your refund along with overpayments that you paid the IRS. Keep in mind that certain filing exemptions or filing EXEMPT may cause you to owe the IRS at the end of the year, which will affect the amount of EIC that’s refunded. Be sure to read my blog post “What you should know about your W4” for more information on exemptions.
Contact 4WAYSTOMONEY to find ways to fully maximize the Earned Income Credit.