2009 Taxes to 2024 Taxes

Tag: earned income credit

  • Tax Assistance from the IRS

    Tax Assistance from the IRS

    The IRS is the sponsor of two volunteer programs to assist in the preparation of their taxes. The Volunteer Income Tax Assistance Program is for taxpayers that earn less than $49,000 a year. While the Tax Counseling for the Elderly Program is designed to help anyone over the age of 59. The programs provide volunteers who are specially trained to help these two groups. The volunteers want to make sure tax payers are filing their returns with the correct tax credits like the Earned Income Tax Credit and the Credit for the Elderly.

    In partnership with community centers and nonprofit organizations, the IRS has setup 12,000 tax assistance sites and plans to open more. The AARP is a major organization involved in establishing these centers with over 5,000 Tax-Aid centers nationwide. Many of the centers also offer language specialist to interrupt the tax laws in your first language.

    The military is another large organization that is in partnership with the IRS to assist in the preparation of tax returns. Military families worldwide can find volunteers to help them prepare their taxes and ensure they receive all tax credits they are eligible for. Combat zone tax benefits are a major concern of these volunteers. Contact your local community center or non-profit organization for locations and office hours.

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  • Credits to Reduce Your Taxes

    Credits to Reduce Your Taxes

    A tax credit reduces your tax bill by the exact amount of the credit and is therefore the number #1 way to reduce your tax burden. And for some will little income, credits can actually create a refund beyond what was paid to the government for the tax year.

    Child Tax Credit

    For each child an individual or a couple have, they receive a tax credit of $1,000 above the $3,500 child tax exemption. There are income limits on the $1,000 credit which are $75,000 for single tax payers and $110,000 for married couples. At these two levels the credit begins to phase out. There is also an Additional Child Tax Credit that you may be eligible for if you are not eligible for the Child Tax Credit.

    Earned Income Credit

    For taxpayers that do not earn above certain thresholds, the earned income credit provides a large credit which often is more than what the individual paid into the federal tax revenue fund. If a taxpayer has two children and earns less than $41, 646 a year or a taxpayer has one child and earns less than $36,995 a year or a taxpayer with no children earns less than $15,880 a year, they are eligible for the credit.