The Earned Income Tax Credit

It seems like tax season is always here, we are receiving tax forms, preparing to file, rushing to the post office on Tax Day, trying to pay our income taxes or waiting for our tax returns.  During this months-long cycle we might not realize everything that we can do to get and keep the most money into our pockets, to keep up our and our children’s quality of life and stabilize our household. 

One thing that is frequently overlooked is the Earned Income Tax Credit (the EITC or EIC).  This is a tax credit that is capped and targeted to those of us making up to approximately $48,000 per year and could be the equivalent of a 25% raise for some people.  The EITC can dramatically reduce the tax obligations of a low-income working family to the point where they might start seeing tax returns, not taxes owed!

If you are between the ages of 25 and 65, you don’t have children and you make less than $18,470 per year then you may be eligible to get as much as $457 back through the Earned Income Tax Credit.
If you have children, it can be as simple as 1-2-3.

1. If your family earns up to $40,545 and have 1 child, you may be eligible to receive as much as $3,050 through the Earned Income Tax Credit.
2. If your family earns up to $45,373 and have 2 children, you may be eligible to receive as much as $5,035 through the Earned Income Tax Credit.
3. If your family earns up to $48,362 and have 3 children, you may be eligible to receive as much as $5,666 through the Earned Income Tax Credit.