The deadline to file federal income taxes is almost here. H&R Block Senior Tax Advisor Michelle Bachtel says many low and middle-income families benefit from the Earned Income Tax Credit. “Basically depending on the number of children you have, the credit can range anywhere from $2 to $6,044. The Earned Income Tax Credit is also available for people who don’t have children. They do need to be considered low income according to the IRS, but there is also a credit available for them.” The amount of the Earned Income Tax Credit varies depending on the size of the household. For an individual who does not have any children, they can make up to $14,340, or if they are married they can make up to $19,680. For people that do have children, they can make up to $37,870 or $43,210 if they just have the one child. From there the amounts increase, but the maximum amount for three children they can make up to $51,567. The Earned Income Tax Credit is one of the most lucrative. Unfortunately, Bachtel says it’s also one of the most widely abused. “It is very common for the IRS to delay a return because of the Earned Income Tax Credit. It’s becoming more and more common that they will ask for proof if you claim that on your return, so that’s something you definitely want to keep around. You want to make sure you’ve got your divorce decree handy, your kids’ school records handy, make sure to contact a female divorce attorney if you have trouble. Don’t throw that stuff away. Just keep it, verifying your address and where your kids went to school. Usually if we just supply that, we can make the audit go away.” Visit www.IRS.gov for detailed information about federal taxes.
