Earned Income Tax Credit-Get It Right

If you are one of many Americans who earn a low to moderate income, you may be eligible for a tax credit that can increase your tax refund. This credit is known as the Earned Income Tax Credit, or more simply the EITC.

The credit is variable and depends on several factors, including your income and family size. Families with at least one qualifying child may receive up to several thousand dollars towards their refund. Even some single taxpayers without children may be eligible.

You must meet certain requirements to be eligible for the EITC. In order to find out, visit irs.gov/eitc and click on “EITC Assistant” to see if you are eligible.

Make sure you use care in preparing your return (or choose a tax professional you trust), because errors on your return could delay your refund, or even cause your tax credit to be denied.

Since this credit can potentially add thousands of dollars to your refund, the IRS takes fraudulent or false claims seriously. So make sure your income is accurately reported and that any children you claim are properly qualified.

Be aware that the IRS is required by law to delay all refunds claiming the EITC until mid-February at the earliest. Those who choose direct deposit should start seeing their refunds arrive around February 27, assuming there are no issues with the return.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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