I have a confession to make…I didn’t know much about taxes when I first started working at Liberty Tax (sssh – keep it quiet!). I know what you’re thinking - how did she get the job? Why would she want to work in the tax industry? But who really wants to know that much about taxes anyway? Well, I live and breathe taxes now having learned so much in my two months wearing the crown. And thanks to the interesting tidbits I am about to divulge you too can save money and expand your shoe collection just like me! So who said learning about taxes isn’t worth it?
The Earned Income Credit is one of those easy ways to get money fast, and you may qualify without even knowing it.
This is a credit for people that need it most… we here at Liberty are all about helping the everyday person, especially in these tough economic times.
You can qualify if:
They have three or more qualifying children and earn less than $43,352 ($48,362 if married filing jointly).
They have two qualifying children and earn less than $40,363 ($45,373 if married filing jointly).
They have one qualifying child and earn less than $35,535 ($40,545 if married filing jointly).
They have no qualifying children and earn less than $13,460 ($18,470 if married filing jointly).
There’s even more benefits for people serving our great country in combat.
If you serve in a combat zone, you can choose whether or not to claim it as earned income to figure your eligibility for the earned income. This decision can increase or decrease the amount of the
Earned Income Credit received. The amount of combat pay is reported on box 12 of
Form W-2. For those in the military, combat pay, the Basic Allowance for Housing, and the Basic Allowance for Subsistence are considered non-taxable income.
Sorry, I know that’s a lot of technical stuff to mull over but believe me it will save you money. For a more concise synopsis look at our Earned Income Credit Tax Tip Video to learn more about credits and other related tax deductions.