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

Earned Income Tax Credit

The Earned Income Tax Credit is a tax credit designed to put money back in the pockets of working people with low-to-moderate incomes. This tax credit can reduce your taxes and help you keep more of what you earn. Filing for the Earned Income Tax Credit means that you could receive a refund payment from the Internal Revenue Service.

To get the EITC, you must meet certain requirements and file a tax return, even if your income from working is low enough that you are not required to file a return.

The EITC income limits for Tax Year 2009 are as follows:

Earned Income and adjusted gross income (AGI) must each be less than:

· $43,279 ($48,279 married filing jointly) with three or more qualifying children

· $40,295 ($45,295 married filing jointly) with two qualifying children

· $35,463 ($40,463 married filing jointly) with one qualifying child

· $13,440 ($18,440 married filing jointly) with no qualifying children.

Filing for and receiving a refund payment from the Earned Income Tax Credit has no effect on many other public benefits you may get. In most cases, the Earned Income Tax Credit payment will not be counted against your eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, Workers with Disabilities (WWD) Medicaid Buy-In or Temporary Assistance for Needy Families (TANF).

Because the income is a federal return it will not impact any federal programs you participate in, but it is possible that it could impact some of the state funded programs you participate in.

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