Earned Income Tax Credit for 2013

With tax time just around the corner, 

here’s some valuable information on the 

Earned Income Tax Credit for 2013!

What is the Earned Income Tax Credit (EITC)?   

Sometimes called the Earned Income Credit (EIC), is a tax credit that can help individuals keep more of the income they have earned through working.  Congress approved the tax credit legislation in part to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to the individuals who claim and qualify for the credit.

How does one qualify for  EITC for the 2013 tax year?  

You must file a tax return, even if you do not owe any tax or are not otherwise required to file a return. You must also meet certain other requirements, including income limits. Your earned income and adjusted gross income (AGI) must each be less than: 

• $45,060 ($50,270 married filing jointly) with three or more qualifying children; 
• $41,952 ($47,162 married filing jointly) with two qualifying children; 
• $36,920 ($42,130 married filing jointly) with one qualifying child; 
• $13,980 ($19,190 married filing jointly) with no qualifying children.

What is the maximum credit for the 2013 Tax Year?

• $5,891 with three or more qualifying children;
• $5,236 with two qualifying children;
• $3,169 with one qualifying child;
• $475 with no qualifying children.

And just a reminder... any EITC refund does not count as income and is excluded from the resource limit for 12 months!

Any questions may be directed to: rsi5@srt.com  or  ndbenefits@outlook.com

Cost-of-Living Adjustment (COLA) 2014

Important Changes in Social Security for 2014

·Substantial Gainful Activity (SGA). The 2014 SGA guideline is $1800 for persons who are blind and $1070 for persons with disabilities other than blindness. In 2013, SGA for persons who are blind was $1740 and  $1040 for persons with disabilities other than blindness.

· Trial Work Period (TWP) Months. The earnings amount to determine if the month is counted as a TWP month went from $750 in 2013 to $770 per month in 2014.

· Federal Benefit Rate (FBR).  The highest SSI payment amount an individual could receive per month in 2013 was $710. This changed to $721 in 2014. For eligible couples, this amount was $1066 in 2013 and was raised to $1082 for 2014.

· Student Earned-Income Exclusion (SEIE).  To qualify for SEIE, an SSI recipient must be under the age of 22, regularly attending school, and working. The amount of earnings that may be excluded in 2014 is $7060 per year or $1750 per month.

· The earnings needed to earn one Social Security Credit (quarter of coverage) is $1200 in 2014.

· Information about Medicare changes for 2014 is available at www.Medicare.gov.

· A complete listing of all 2014 Social Security changes can be found at www.socialsecurity.gov/pressoffice/factsheets/colafacts2014.html.