Thursday, October 11, 2012

Do You Qualify for the Earned Income Tax Credit?

-   Millions of Americans forfeit critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for low-to-moderate-income individuals who work. Taxpayers who qualify and claim the credit could owe less federal tax, owe no tax, or even receive a refund.


The EITC is based on the amount of your earned income and whether or not there are qualifying children in your household. If you have children, they must meet the relationship, age, and residency requirements. Additionally, you must be a US citizen, have a valid social security card, and file a tax return to claim the credit.


General requirements:
If you were employed for at least part of 2012 and are at least age 25, but under age 65, and are not a dependent of anyone else you may be eligible for the EITC based on these general requirements:
  • You earned less than $13,980 ($19,190 married filing jointly) and did not have any qualifying children.

  • You earned less than $36,920 ($42,130 married filing jointly) and have one qualifying child.

  • You earned less than $41,952 ($47,162 married filing jointly) with two or more qualifying 
    children.

  • You earned less than $45,060 ($50,270 married filing jointly) with three or more qualifying children.
Tax Year 2012 Maximum Credit
  • $5,891 with three or more qualifying children
  • $5,236 with two or more qualifying children
  • $3,169 with one qualifying child
  • $475 with no qualifying children
Investment income must be $3,200 or less for the year.


If you think you qualify for the EITC but aren't sure, call our office. We are your financial partners, and we are here to help.

Security Tax Services LLC

North Sound                                       South Sound
2802 Wetmore Ave, Suite 212           33530 1st Way S, Suite 102
Everett, WA 98201                             Federal Way, WA 98003
425.339.2400                                     253.237.0751
fax 425.259.1099                               fax 253.237.0701

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