Prepare accurate tax returns for people who claim certain tax credits, such as the: Earned Income Tax Credit (EITC) - Helps low- to moderate-income workers and families get a tax break. Child Tax Credit/Credit for Other Dependents (CTC)/(ODC) – Provides a tax benefit for families with a qualifying dependent child and families with dependents ...

Income limits and amount of EITC for additional tax years. See the earned income, investment income, and adjusted gross income (AGI) limits, as well as the maximum credit amounts for the current, previous and upcoming tax years.

Dec 10, 2024 · The income limits for earned income, adjusted gross income and investment income are adjusted for cost-of-living each year. Find the dollar amounts here. To Claim EITC With a Qualifying Child, the Child Must Pass All of the Following Tests: Relationship A son or daughter (including an adopted child or child lawfully placed for adoption) Stepchild

EITC has played a crucial role in lifting millions of low- to moderate- income workers out of poverty for 50 years. The Tax Reduction Act of 1975 introduced EITC as a modest tax break to provide financial help to economically challenged families and encourage work. Claiming the credit can reduce the tax owed or may also give a larger refund.

Jan 14, 2025 · Publication 3211 (EN-SP), Earned Income Tax Credit (EITC) Q&A (English/Spanish) PDF - This electronic brochure is used as an educational tool at IRS Taxpayer Assistance Centers, seminars, workshops, businesses, libraries and other public places to promote awareness of EITC eligibility.

Jan 29, 2025 · If you qualify for the federal EITC, you may also be eligible for a similar credit from your state or local government. Twenty-eight states, plus local municipalities including the District of Columbia and New York City, offer residents an earned income tax credit for 2024. You can determine your eligibility and file and claim your EITC for free:

Jan 31, 2025 · The day also highlights free tax preparation and electronic filing through Volunteer Income Tax Assistance (VITA)/Tax Counseling for the Elderly (TCE) sites and Free-File. Join us for Awareness Day on Friday, January 31, 2025 Join us in making the 19th annual EITC Awareness Day as successful as last year’s.

Recordkeeping is important for those who are self-employed to determine if they are eligible for the EITC. In Tax Tales: The Case of the Teased Up Records, the preparer talks with Mrs. Davis about how to reasonably reconstruct records for her hair styling business to meet EITC due diligence requirements, and determine if she is eligible for the credit.

Jan 22, 2025 · The special rule for divorced or separated parents allows only the noncustodial parent to claim the child as a dependent for the purposes of the child tax credit/credit for other dependents and the dependency exemption and does not apply to the EITC. For more information, see Publication 501, Dependents, Standard Deduction, and Filing Information.

Jan 27, 2025 · See Publication 596, Earned Income Credit, and the Instructions for Form 1040 and Form 1040-SR, U.S. Individual Income Tax Return, for more information. SSN requirement You and every child claimed for the credit must have an SSN that is valid for employment and was issued before the due date of the return (including extensions).