Requirements for a Low Income Tax Credit
A low income tax credit, known as the Earned Income Tax Credit, is available in varying amounts for families who make up to $43,000 per year. Understand the eligibility requirements for a low income tax credit with help from an enrolled agent in this free video on filing taxes.
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My name is Penny Tokash, I'm an enrolled agent and I have my business in Jonesboro, Georgia, Tax Facts Incorporated. I'm going to talk to you today about the Earned Income Tax Credit, EITC. It's a tax credit that is designed for low income people. One of the things that most people don't realize is that the Earned Income Tax Credit is actually a bell curve. In other words if you make a hundred dollars you're not going to get one. As you climb up in income it increases, once you reach a plateau of eleven thousand to fifteen thousand you're at the max, and then you start down the other side, as your income gets higher you get less. So you have to realize that, that is how the earned income is working. Now if you have no children, then the maximum that you're going to get ends at around twelve thousand. If you have one child it's a little bit less, if you have two or more children you're at the max. So as your income gets higher, up to forty-three thousand dollars, you will get a little bit, but the maximum is going to be somewhere between twelve and fifteen thousand dollars of income.