HMC-FMF-PJ
02-01-2007, 08:07
Remember to check if you qualify to claim an often-overlooked benefit that's worth up to $4,536 this year.
The Earned Income Tax Credit (http://www.irs.gov/individuals/article/0,,id=150557,00.html)(EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. The refund amount is based on income, filing status and the number of qualified children in the family (see box). Even families who owe no taxes may be eligible. Yet up to a quarter of eligible taxpayers fail to claim the EITC.
Check the military pay tables. Most junior enlisted personnel with kids qualify for this tax break, so make sure you take care of your men by reminding them about it.
http://www.irs.gov/individuals/article/0,,id=150708,00.html
Special rules (http://www.irs.gov/individuals/article/0,,id=150708,00.html)apply for calculating earned income for members of the U.S. Armed Forces in combat zones.
Nontaxable payis not considered earned income for the EITC. Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). See Publication 3 (http://www.irs.gov/publications/index.html), Armed Forces’ Tax Guide, for more information.
For help in determining if you are eligible for the EITC, go to http://www.irs.gov/eitc and click on “EITC Assistant.”
Maximum earned income to qualify for the earned income tax credit:
• No qualifying children: Less than $12,120 ($14,120 if filing jointly)
• One qualifying child: Less than $32,001 ($34,001 if filing jointly)
• More than one qualifying child: Less than $36,348 ($38,348 if married filing jointly)
Maximum earned income tax credits for tax year 2006:
• Family with no children: $412.
• Family with one child: $2,747.
• Family with two or more children: $4,536.
The Earned Income Tax Credit (http://www.irs.gov/individuals/article/0,,id=150557,00.html)(EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. The refund amount is based on income, filing status and the number of qualified children in the family (see box). Even families who owe no taxes may be eligible. Yet up to a quarter of eligible taxpayers fail to claim the EITC.
Check the military pay tables. Most junior enlisted personnel with kids qualify for this tax break, so make sure you take care of your men by reminding them about it.
http://www.irs.gov/individuals/article/0,,id=150708,00.html
Special rules (http://www.irs.gov/individuals/article/0,,id=150708,00.html)apply for calculating earned income for members of the U.S. Armed Forces in combat zones.
Nontaxable payis not considered earned income for the EITC. Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). See Publication 3 (http://www.irs.gov/publications/index.html), Armed Forces’ Tax Guide, for more information.
For help in determining if you are eligible for the EITC, go to http://www.irs.gov/eitc and click on “EITC Assistant.”
Maximum earned income to qualify for the earned income tax credit:
• No qualifying children: Less than $12,120 ($14,120 if filing jointly)
• One qualifying child: Less than $32,001 ($34,001 if filing jointly)
• More than one qualifying child: Less than $36,348 ($38,348 if married filing jointly)
Maximum earned income tax credits for tax year 2006:
• Family with no children: $412.
• Family with one child: $2,747.
• Family with two or more children: $4,536.