Category Archives: Earned Income Credit

Posts related to Earned Income Credit.

2016 Earned Income Credit Amount

The IRS announced the 2016 Earned Income Tax Credit amounts which have some small changes from the 2015 EIC.  In a statement, they noted that for tax year 2016 the maximum Earned Income Credit (2016 EITC) amount is $6,269 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,242… Read More »

EITC and Veterans

The EITC and Child Tax Credit expansions and the American Recovery and Reinvestment Act of 2009 made more workers eligible for larger refunds, and they remain in effect for workers in 2012. Together, these credits lifted over nine million people and working families above the poverty line in 2010. About one in four current or… Read More »

Form W-5 Earned Income Credit

Would you like to help your employees to increase net income at no cost to you? You can do this by giving employees who meet the requirements of the earned income credit with the pay and subtracting those payments you make of payroll taxes.   Form W-5 Earned Income Tax Advance This is possible through the… Read More »

State Earned Income Tax Credit

The federal EITC has been wildly successful, increasing workforce participation and helping 6.5 million Americans escape poverty in 2012, including 3.3 million children. Children of EITC recipients have been shown to be born healthier, perform better in school, attend college at higher rates, and earn more as adults than those children who grow up in… Read More »

Notice CP75 and Earned Income Tax Credit

Taxpayers will receive a Notice CP75 because the IRS is auditing your tax return. The IRS will retain your refund until they finish the tax audit related to claiming the earned income credit. You must send the information that the IRS needs before the IRS can give a refund and pay you the earned income credit.  The CP75 letter… Read More »

What EITC Due Diligence?

Earned Income Tax Credit – The Earned Income Tax Credit (EITC), sometimes called EIC or Earned Income Credit is a refundable tax credit. Meaning, EITC can reduce the federal tax to zero and any left-over credit is refunded. But, workers must file a tax return to get the credit even if their income is below… Read More »

2014 Earned Income Tax Credit EITC Calculation Example

A formula presentation of the EITC calculation follows (where category reflects EITC factors based on the number of children and filing status, and AGI is equal to gross income from all taxable sources such as earned income, dividends, taxable interest, alimony, capital gains, taxable pensions, etc., less statutory adjustments).   2014 Earned Income Tax Credit EITC Calculation… Read More »