The Working Tax Credit: What It Is And What It Does

You may have read about the working tax credit, which has been billed in the media as the Making Work Pay tax credit. Working adults will usually receive this tax credit in the amount of approximately $400. This income tax credit is only available to taxpayers that are eligible to receive it. Eligibility is determined by some very specific income guidelines. This credit was established to help lower income families that don't make a lot of money each year and have trouble paying high taxes. This helps to either reduce the taxpayer's annual tax bill or can lead to a bigger tax refund.

The EITC or Earned Income Tax Credit is another tax credit program that is based on income. This deduction was created to help encourage employment and to help taxpayers that are in the low to moderate tax brackets. In most cases this credit is only available to taxpayers that have children who qualify under the program, however some taxpayers without children are eligible. This is a very easy deduction to qualify for if you are in the low to medium income bracket and have children living at home, despite the fact that there are certain specifications that need to be met.

There are two different types of tax credit that income earners can qualify to receive. For example, if your children go to a childcare facility while you work, there is a credit that you might be eligible for with that as well. This credit benefits working parents that are forced to put their children in costly child care programs so they will be able to go to work. Beyond these basic programs for income tax credits, your best bet would be to consult with a professional tax preparer or accountant and have them file your taxes for you on your behalf.

These professionals are educated and up on all of the most current deductions and credits, helping you to get more deductions on your tax return. There are, however, many very helpful software programs such as the one from H & R Block, that can be used at-home to help you to legally maximize your tax returns. You go through the program step-by-step to determine if you qualify for specific credits and how much you are eligible to deduct under these tax programs.

The federal government implemented the working tax credit and other tax credit programs for eligible taxpayers, to help those taxpayers keep more of their own money in their own pockets. You should speak with your tax preparer or accountant specifically about these deductions as well as other credits, and always ask about credits for hybrid car purchases or charitable donations that could mean big money. These professional services can be quite costly, however having a professional on your side will help you to maximize your tax return and get you a bigger refund.

 






 

 

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Tax Credit News:

 

IRS encourages people to apply for earned income tax credit
The earned income tax credit could help low- to middle-income earners in Ventura County who qualify...


United Way Offers Free Tax Help - KFBB NewsChannel 5

United Way Offers Free Tax Help
KFBB NewsChannel 5
The United Way says in previous years, more than 4000 people filed for the Earned Income Tax Credit, producing over $6 million in returns. Tim McCauley, Director of United Way of Lewis and Clark Area, says, EURœIt's really beneficial to a number people to .
Free tax prep offered to southern Nevada residentsKVVU Las Vegas

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Energy Tax Breaks Proposed, Despite Waning Support for Subsidies - New York Times

New York Times
Energy Tax Breaks Proposed, Despite Waning Support for Subsidies
New York Times
Their efforts received a boost on Thursday from President Obama, who called for a package of tax credits for renewable power as part of a broader energy plan that he outlined while on a campaign swing through Nevada and Colorado.
Colorado's future in renewable energy dims after years of growthDenver Post

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Rebuilding America: Proposals emerge to fix 'dysfunctional' R&D tax credit
The R&D tax credit, a key incentive for spurring investment in U.S. innovation and manufacturing, needs a major overhaul, a tax expert says. View the full article HERE ...


Tax preparers enter busy season, look for tax credits - SCNow

Center For American Progress
Tax preparers enter busy season, look for tax credits
SCNow
Tammy Lail helped a client file her taxes Friday. Lail has been a certified bookkeeper at Seaside Tax and Business service for more than 20 years. She keeps an eye out for those who qualify for the Earned Income Tax Credit. Most taxpayers have either .
The Tax Credit That's Helping Single Women-Headed Families Fight PovertyHuffington Post
Earned income tax credit claimed by 26M last year, but IRS says 1 in 5 .Greenfield Daily Reporter
Many who qualify miss out on tax creditWCAX
Center For American Progress -WISN Milwaukee
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North Carolina Joins School Choice Fold with Major Tax Credit for Families . - Sacramento Bee

North Carolina Joins School Choice Fold with Major Tax Credit for Families .
Sacramento Bee
27, 2012 -- /PRNewswire-USNewswire/ -- The largest ever individual state income tax credit for educational expenses will be available this year to North Carolina families who send children with disabilities to the private schools of their parents' .

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Earned Income Tax Credit could mean an extra couple thousand dollars
HUNTSVILLE, Alabama -- There's a chance you or someone you know could be due a boost of a couple of thousand dollars on this year's tax refund...


Millions overlook valuable tax credit
Millions of individuals could overlook a special federal tax credit because they dont know about it...


 

 

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