Friday, January 30, 2015
Toward the end of last year's tax filing deadline, the Internal Revenue Service (IRS) announced that more than $760 million in unclaimed refunds would disappear after April 15 – so many dollar bills that, if stacked, they would reach higher than 187 Empire State Buildings! A larger portion of this missed opportunity comes from failing to claim the Earned Income Tax Credit (EITC)."One in four people who qualify for the Earned Income Tax Credit should be getting up to $6,143 in additional tax refunds, but they miss out because it's complicated to tell if you qualify," said David Prokupek, CEO of Jackson Hewitt®.
One-third of the EITC-eligible population changes each year based on marital, parental and financial status, and many Americans may not know they qualify for this credit. The IRS allows these individuals to catch up, offering a three-year window for filing federal tax returns.
To claim the EITC, taxpayers must be employed or self-employed and have a Social Security number. They will need to show proof of having less than $3,350 in investment income and have earned income and adjusted gross income lower than the following:
Single, Head of Household, Qualifying Widow(er)
No Children - $14,590
1 Child - $38,511
2 Children - $43,756
3 Children - $46,997
Married Filing Jointly
No Children - $20,020
1 Child - $43,941
2 Children - $49,186
3 Children - $52,427
For example, a married couple filing jointly with three children and a combined earned income of $23,000 could qualify for the maximum EITC of $6,143. If the couple overlooked the EITC the past three years, they possibly could claim thousands of dollars more for each year for a total refund approaching half their annual income.
Source: Jackson Hewitt®
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