What Is EITC & What Errors to Avoid When Filing Your Taxes? admin Tuesday, February 18, 2014 The Receipt, Your Money and You The EITC (Earned Income Tax Credit) is a refundable tax credit which allows taxpayers to receive monies if their household earned less than $51,567 during the tax year. Not many people are aware that they can file for the EITC credit, which is why the IRS launched a nationwide awareness campaign to ensure families filed appropriately. To ensure filers are taking the credit correctly, the IRS offers an online advice assistant at www.irs.gov/eitc. Taxpayers and tax preparers can get assistance with concerns about their family size, filing status, income requirements, and more. The EITC is available for those who work full-time or part-time jobs, self-employed, and even farmers. If you earned $51,567 or less in 2013, by filing for the credit, you can receive up to $6,044 (for families with 3 or more kids) and/or up to $487 filers without children. However, before you prepare your return, please avoid making errors or false calculations when taking the EITC. Some errors to avoid are: – Claiming a child who does not meet the relationship, age or residency tests – Filing as “single” or “head of household” when married – Over or under reporting of income and or expenses to qualify for or maximize EITC – Missing Social Security numbers or Social Security Number and last name mismatches for both taxpayers and the children Even if you are not required to file a return, as a worker, you must file a tax return and claim the credit specifically. To file for the EITC for FREE, there are three options: IRS.gov, Online Fillable Forms, Volunteer Income Tax Assistance (VITA), Tax Care for the Elderly (TCE), or call 1-800-906-9887.
