Understanding The Eligibility Requirements Of EITC Is Not That Difficult

Earned income tax credit scheme is a great scheme for people who are on a low or moderate income. If you’re keen on taking advantage of this credit all you need to do a check for the rules of eligibility. These rules keep changing year after year so all you need to do is visit the official website and check the 2016 EIC. This credit is usually applicable for any person who earns less than $50,000 in a year. It is also applicable for any person who has recently lost his job, working independently as a freelancer, has been divorced recently or a grandparent who is looking after their grandchild. income-tax-refundThere are a number of benefits of this credit and one of the best things about it is that you will end up saving on a lot of money that you were initially using to pay up your taxes. People who do not earn a lot of money can use this extra money to do something for the house or their family.income-tax-refundOne of the first things that you should do before applying for the earned income tax credit is checking the eligibility criteria for the dependents that you can list on your application form. This list is critical as it will determine the amount that you will get as a refund. You should always know that the qualifying child does not need to be related to both the parents. Either of the parents can be related to the child through blood, marriage law. You can list your step sister, your step brother, your grand child and even your adopted child as your qualifying child in your earned income tax credit application form. It is critical to fill the form accurately so that the application gets accepted and approved quicker.

Leave a Reply

Your email address will not be published. Required fields are marked *