Businesses are beginning to issue W2 forms to their employees. Most people should receive all of their W2 forms no later than January 31st. Once you receive your tax documents, it is a great idea to schedule your appointment to get your tax return prepared. Late January and Early February are very busy times in tax offices around the nation, so the earlier you can schedule your appointment during the busy part of the season the better!
The Earned Income Tax Credit (EITC) is a federal tax credit for low- and moderate-income working people. It encourages and rewards work as well as offsets federal payroll and income taxes.
Twenty-nine states plus the District of Columbia have established state EITCs. State EITCs build on the benefits of the federal EITCs and each state has it’s own set of qualifications.
The EITC is one of the most utilized tax credits. *Nationwide during 2017, more than 25.8 million eligible workers and families received about $63.8 billion in EITC. The average amount of EITC received nationwide was about $2,470.00.
Here are some facts about the Federal Earned Income Credit
It is the law that the IRS cannot issue refunds claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. The IRS will process those returns when but will not issue the related refunds before mid-February. The soonest you will see these types of refunds is February 27th, but only if you have your refund direct deposited into your bank account.
*In CA alone, there were 2.9 Million claims totaling $6.8 Billion dollars with an average claim of $2739.00.
You do not need to have children in order to qualify for the EITC.
You must have EARNED income.
*There are two ways to get Earned Income:
You work for someone who pays you or You own or run a business or farm.
Examples of Income that are Not Earned Income:
- Pay received for work while an inmate in a penal institution
- Interest and dividends
- Retirement income
- Social security
- Unemployment benefits
- Child support
*The maximum amount of credit for Tax Year 2017 is:
- $6,318 with three or more qualifying children
- $5,616 with two qualifying children
- $3,400 with one qualifying child
- $510 with no qualifying children
For tax year 2017, the maximum amount of Earned Income and your Adjusted Gross Income must both be less than…
|If filing…||Qualifying Children Claimed|
|Zero||One||Two||Three or more|
|Single, Head of Household or Widowed||$15,010||$39,617||$45,007||$48,340|
|Married Filing Jointly||$20,600||$45,207||$50,597||$53,930|