Earned Income Tax Credit (EITC) Information

How to Pay Zero Taxes by Jeff A. Schnepper

Fully updated to include all the latest tax law changes, How to Pay Zero Taxes outlines the easiest, most practical strategies you can use to lower your taxes this year, next year, and beyond. From converting personal expenses into business expenses to avoiding or surviving an IRS audit, Jeff Schnepper's guide comprehensively covers more deductions than any other tax book, all conveniently organized in six fast-access categories: exclusions, credits, “above-the-line” deductions, “below-the-line” deductions, traditional tax shelters, and supertax shelters.

Jeff A. Schnepper is the author of several books on finance and taxation, including How to Pay Zero Estate Taxes and all twenty-four previous editions of How to Pay Zero Taxes. He is a financial, tax, and legal advisor to the Transamerica sales force and runs a full-time accounting and legal practice in Cherry Hill, New Jersey. Mr. Schnepper is Microsoft's MSN MONEY tax expert, an economics editor for USA Today and is tax counsel for Haran, Watson & Company.

     

Earned Income Tax Credit (EITC) Information - Child Tax Credit

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Earned Income Tax Credit (EITC) Information * Child Tax Credit

Child Tax Credit   
Tony Robinson

Now, here's a real savings to the individual taxpayer with children. The child tax credit is a direct tax credit that is available to provide credit to taxpayers with income below certain established levels.

The maximum credit per child is $1000 and is first applied to reduce or eliminate the taxpayer's tax liability. How does this tax credit work, and does everyone qualify? Well, let's start with the last question first. Yes, everyone with children qualifies, however the tax credit phases out when income is above $110,000 for married filing jointly, $75,000 for single, head of household, or widow, and $55,000 for married filing separately.

Article to continue below----------------------------------------------

New York Mayor Bloomberg Presses For Tax On Soda (Reuters Via Yahoo! News)
New York City Mayor Michael Bloomberg urged state legislators to levy a tax on soda, saying the money raised would help plug the state's shortfalls in health care and education funding.

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Now, to answer the "how does it work" aspect; the best approach might be to simply break down the requirements, and explain each fully. The child tax credit is the responsibility of the Internal Revenue Service, and the credit issuance is determined through the tax returns the individual tax payer completes each year. Taxpayers must complete either the 1040 or the 1040A and the IRS from 8812. The IRS will then determine eligibility, and process accordingly; the requirements and limits change each year, so the individual's eligibility may change each year.

In order to qualify, a family must have earned at least $10,500 in income, and that figure will rise each year, according to inflation. Article to continue below----------------------------------------------

NY Governor Rejects Reimposing Stock Transfer Tax (Reuters Via Yahoo! News)
New York state should not reimpose a stock transfer tax as this would make Wall Street firms move to other cities such as New Jersey's Newark, or other states like Connecticut, Governor David Paterson...

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During its original year of inception, many families with qualifying children were mailed an advance tax credit of either $300 or $400 dollars; but they were also told this would reduce their end-f-year tax credit, dollar for dollar.

The method used for determining the tax credit is fairly simple, and is not difficult to calculate; however, any individual taxpayer should seek the advice and assistance of a tax professional when preparing their tax return.

The credits, as stated earlier are claimed when you complete a 1040 or 1040A and file your returns with the IRS. Although many individual taxpayers pay for a professional to complete their returns each year, there are qualified preparers that are available free of charge each year, through the IRS; either way, make sure that you communicate your qualifications for the child tax credit, and check your return to see that the credit was applied.

The child tax credit, along with the Hope and Lifetime Learning credits are a direct means to affect the individual taxpayer's tax liability and offer some level of tax relief. This is meant to help parents with the costs associated in raising children, and educating them. Most often, the child tax credit is a way to alleviate the existing tax liability for middle-income taxpayers. For the extremely low income families, there is often no tax due, so there is no allowable credit. Although it does not help the poverty level families as a form of tax refund or tax-free income, it does help to alleviate any tax liability. The Earned Income Credit is used by many poverty level or low-income families as a supplement to their earned income.

Tony Robinson is a Webmaster and International Author.
Visit http://www.tax-portal.com/ for his tax tips.

What Other Authors say about Taxes

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There are many websites on the Internet today that gives much needed income tax help for those who have no idea of what's going on during tax time. Income tax is a tax paid on income, unfortunately no...

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Index of Articles about Taxes

What Other Authors say about Taxes

Income Tax Help by LeeAnna

There are many websites on the Internet today that gives much needed income tax help for those who have no idea of what's going on during tax time. Income tax is a tax paid on income, unfortunately no...

Advice on Internal Revenue Service Audits by Roni Deutch

It is important to keep in mind that the IRS computer system selects the returns that are audited, not human employees. The computer system selects returns that are likely to yield the most money to the...

Preparing Ahead For A Pleasant Tax Day by Carl LaFresnaye

How did you spend your last tax day? In line at a post office at almost midnight, dropping off your taxes? Dreading going on an extension again – knowing if you owe and don't pay it on time, there will...

Advice For Using Free Tax Forms by Carl LaFresnaye

There are many different avenues that can be used to obtain free tax forms from the government. There are usually free tax forms that can be found at the local libraries during tax season. There are...

Do You Know When To File A Tax Return? by Ken Snowie

Every year, millions of Americans dread the inevitable; they have to gather all of their receipts and records and get ready to file their Federal Income Tax Returns. When was tax season first initiated?...

Why Do We Pay Taxes? by Carl LaFresnaye

As Benjamin Franklin famously said, nothing is certain except death and taxes. But where do taxes come from, and do we really need them? A History of Taxes The first recorded use of taxation was...

Where Can You Get Answers To Your Tax Questions? by Carl LaFresnaye

Taxes are an unfortunate part of our lives. But our tax money finances so many parts of our government, taxes are here to stay. It would be nice if taxes were cut and dried, easy to understand and easy...

How Can Sales Tax Save You Money? by Steve Dolan

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