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Earned Income Credit 2010 Amounts Increased
Help is on the way with increased earned income credit amounts for 2010. Low to moderate income families may be eligible for up to $5,666 if they have three or more qualifying children.
By: Harbor Financial
Taxpayers who qualify for the earned income credit may also qualify for free tax preparation and filing services. Some active duty military families may also qualify for the earned income credit. Harbor Financial has helped thousands of American families prepare and file their tax returns. A free tax calculator is also provided to help estimate tax refunds.
Brand name services such as: TurboTax are offering free tax preparation and filing for those who qualify. American families who have struggled with the tough economy should stand up and take notice when it comes to tax credits. In California alone $1 billion were left in the hands of Uncle Sam because taxpayers didn’t know they qualified for the earned income credit.
The earned income credit will either reduce tax owed or produce a refund for taxpayers. If families qualify for the earned income credit and receive a refund, then the funds can be used for any purpose such as: buying groceries, paying rent, buying clothing for the children, or paying bills.
Earned Income Credit Worksheet
There are several tests to pass to qualify for the earned income credit. A Social Security number is a must, filing status cannot be “Married Filing Separately”, year long U.S. citizen or resident alien, no more than $3,100 in investment income, some income from working must be made, and there are rules on foreign earned income as well.
Earned Income Credit Qualifying Child Rules
Qualifying children for the earned income credit must meet the tests to be eligible. The relationship, age, residency, and joint return tests must be passed in order to qualify for the tax credit. Qualifying children can only be claimed once and to claim the earned income tax credit the tax filer cannot be claimed as a dependent by anyone else.
Earned Income Credit Rules for Individuals Without Children
If the taxpayer does not have children, he or she may still be eligible for the earned income credit. The taxpayer must be at least 25 years old, but not more than 65 years old. The taxpayer cannot be a qualifying child of another tax filer or their dependent.
Earned Income Credit 2010 Information
Individuals can prepare and file their tax returns knowing they will get the biggest refund possible and receive every single tax credit they deserve to claim including the earned income tax credit. The new increases in the earned income credit can help a lot of people and put money in their pockets right now.
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Harbor Financial provides tax information, a free tax calculator, and online tax filing. Visit Harbor Financial to gain helpful knowledge with preparing income tax forms efficiently and accurately. The tax videos provide visual and audio how to lessons guiding the taxpayer through filling out proper forms with full explanations making filling them out easy to understand. For over eight years Harbor Financial has helped thousands of taxpayers prepare and file income tax forms, and provides a free tax refund estimator.
Harbor Financial Online is based in Traverse City, Michigan.
Page Updated Last on: Feb 03, 2011