The Internal Revenue Service announced annual inflation adjustments for a number of provisions for the year 2015, including tax rate schedules, tax tables and cost-of-living adjustments for certain tax items. Congress made substantial progress in recent years in “making work pay” for low-income families with children by strengthening the Earned Income Tax Credit (2015 EITC) and Child Tax Credit
2015 EITC Income Limits and Maximum Credit
Specifically, the IRS established 2015 Earned Income Tax Credit EITC Income Limits. The following information will be applicable below for the 2015 EITC tax year. You may claim the EIC if you were between ages 25 and 64 at the end of 2014 and meet other criteria. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. Each year the amount of the earned income credit will changes. This information is valid for the 2015 earned income tax credit. It is vital to ensure that you are using amounts for the right year when claiming the EITC.
2015 Tax Year Earned Income and adjusted gross income (AGI) must each be less than:
- $47,747 ($53,267 married filing jointly) with three or more qualifying children
- $44,454 ($49,974 married filing jointly) with two qualifying children
- $39,131 ($44,651 married filing jointly) with one qualifying child
- $14,820 ($20,330 married filing jointly) with no qualifying children
Children and the 2015 EIC
For the EIC, children must be under 19 at the end of 2014. (Full-time students can be under 24; children who are permanently and totally disabled can be any age.)All childless workers under age 25 are ineligible for the EITC, so young people just starting out —including low-income young men, who have disturbingly low labor-force participation rates — receive none of the EITC’s proven benefits.
2015 EITC Maximum Credits
- $6,242 with three or more qualifying children
- $5,548 with two qualifying children $3,359 with one qualifying child
- $503 with no qualifying children
To receive the EITC in 2015, there is a limitation that investment income must be $3,400 or less for the 2015 tax year.
Claiming the 2015 EITC
REMEMBER: These numbers are valid for the tax year 2015, which is effective January 1, 2015. These are not the correct numbers to prepare your 2014 tax returns in 2015. These numbers for the earned income tax credit will be used to prepare a tax year 2015 tax return when it is due April 15, 2016.
Taxpayers may also be eligible for certain state run programs that are similar to the federal EITC which is run by the IRS.
IRS Recognizes Legal Same-Sex Marriages
In June 2015, the United States Supreme Court held that all states must allow same-sex couples to marry on the same terms and conditions as opposite-sex couples, and that all states must recognize lawful same-sex marriages performed in other states.
The U.S. Department of the Treasury and the Internal Revenue Service ruled in 2013 that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.
2015 EITC For Same-Sex Marriage
Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country will be covered by the ruling. However, the ruling does not apply to registered domestic partnerships, civil unions or similar formal relationships recognized under state law. Read more here.