is now 
The IRS reports millions of American workers may qualify for the Earned Income Tax Credit (EITC) for the first time this year due to changes in their marital, parental or financial status; though many are unaware that this credit exists.
The EITC is a benefit for people with low or moderate income, and may reduce the amount of tax they owe or give them a refund. To receive the credit, workers must file a return and make a specific EITC claim even if they aren’t generally required to file.
Qualifying taxpayers must have earned $52,427 or less in 2014 and have worked for someone else or owned or operated their own business or farm. Up to three qualifying children can be claimed and may increase the credit amount. Receiving the credit will not affect eligibility for other federal assistance or benefits programs.
Active-duty military, members of the clergy and some persons who have certain types of disability income may also qualify for the EITC and must meet special income reporting rules.
Because the EITC is a refundable tax credit, workers may get money back, even if they paid in no tax. Nationwide last year almost 28 million eligible individuals and families received more than $66 billion in EITC. The average EITC received was $2,407.
Note: The EITC is subject to special rules and eligibility may be a bit complex to interpret. There is an online tool called the EITC Assistant that may help you determine if you qualify and what amount of credit you may receive. If you have any questions, please contact us at McRuer CPAs.
