The earned income tax credit is one of the tax credits that are available for taxpayers who earn a low amount of money during the year. If your income is between $37,900 and $51,600, you may be eligible for this credit. Today, we are discussing the benefits of the earned income tax credit.
You Are Rewarded For Working
The purpose of this credit is to reward low earning taxpayers to continue to work. Some believe that the earned income tax credit encourages those on public assistance to leave it and attempt to secure higher paying jobs. Therefore, this tax credit benefits you because even though you are not paid as much as you like you can look forward to the IRS rewarding you at the end of the year.
Assists You with Moving Out of Poverty
If you are considered to be at the poverty level, the earned income credit can be your way out if you use your tax refund correctly. This is because this credit is designed to supplement the wages or lower paid workers. With the assistance of public assistance and the earned income credit, a family can easily rise above the poverty level.
If you meet the requirements for the earned income credit, you need to claim it. Even if you just receive, a couple of hundred more dollars than you would without claiming the credit, receiving something is better than receiving nothing at all.
Get in touch with us for a tax consultation! You can read our Seattle CPA profiles here! You can reach our main office at (425) 483-6600!