Earned Income Tax Credit (EITC) 2018


It’s Earned Income Tax Credit  (EITC) Awareness Day and we are celebrating by proving you resources to help make the most of your tax returns this year.
The Earned Income Tax Credit (EITC) is an important benefit for working individuals and families who earn lower or moderate income wages. The credit offsets taxes, supplements very low wages, and encourages work. The EITC can also cover any federal income tax workers may owe at tax time (saving you money in the long run).
Curious about whether you qualify for the EITC? Here’s a table with a breakdown of eligibility criteria:
  • $48,340 ($53,930 married filing jointly) with three or more qualifying children
  • $45,007 ($50,597 married filing jointly) with two qualifying children
  • $39,617 $45,207 married filing jointly) with one qualifying child
  • $15,010 ($20,600 married filing jointly) with no qualifying children

*Income cannot exceed above amounts for each category

You can also determine your EITC eligibility on the IRS website HERE

If you’re curious about how much of a credit you could receive, there’s a link for that! All you need is your income from 2017, number of children you’re claiming, and your filing status (married, single/head of household, etc.) and the EITC Estimator does the rest.

Claiming the EITC does NOT affect eligibility for other benefits such as SNAP (food stamps), SSI, Medicaid, cash assistance, or public housing and saving your tax refund does not count against federally-funded benefit program resource/asset limits for 12 months after the refund is received.

Most recent data from 2015 states that the EITC has lifted about 6.5 million people of out poverty (including about 3.3 million children) and provided tax credits to over 26 million working families and individuals who filed federal tax returns.

The EITC is one of several tax credit opportunities you could take advantage of this tax season. Our friends at Nerd Wallet have created an awesome post outlining the typical tax credits you may qualify for. Don’t allow the tax season to overwhelm you!

There is a wealth of information available to you via the web and around the community. For more information related to income tax issues, email us at MoneyMatters@pensacolastate.edu.

Here’s to a prosperous year and tax season!

 

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