The Earned Income Tax Credit (EITC) is one of the most valuable tax credits available to lower- and middle-income families. A huge number of families are eligible to claim this credit every year because of their income and the number of household dependents they have.
Yet the IRS says that an incredible number of eligible families fail to claim the credit. Have you failed to claim the EITC?
Our guide is going to reveal how much you may be able to claim back on your taxes this year according to the earned income credit chart.
How Much Can You Claim?
It all depends on your adjusted gross income and how many dependents you have in your household. It also depends on if you’re a single taxpayer or if you’re married but filing jointly. However, this only changes the adjusted gross income, instead of the maximum credit.
So, what if you have no dependents? The maximum credit you can claim is $519. Single taxpayers must have an adjusted gross income of less than $15,270, whereas married taxpayers filing jointly must have an income of less than $20,950.
But if we look at the other side of the spectrum where more than three dependents are involved things change. The maximum credit is $6,431.
Single taxpayers must have an adjusted gross income of less than $49,154, whereas joint taxpayers must have an income of less than $54,884.
There’s a big difference.
The average payout is typically in the middle of these two figures. So even if you earn a good income you could still claim these credits.
How Do I Know How Much I Can Claim?
This is where things get complicated. The EITC is not an easy tax credit to calculate. That’s why you should use an online EIC calculator to work this out.
These calculators are usually free to use and all you need to do is to enter some basic information about yourself and your living situation. It will give you a rough estimate of how much you may be able to claim on your next tax return.
Find Out More About the EITC Now!
Do you want to discover more about this tax credit? Then check out the full article and start claiming today.