Tuesday, February 8, 2011

Make sure you ask for this when you do your taxes this year!!! Potentially large credit for you!

The Earned Income Tax Credit (EITC) is the name of the game!  This credit is available to you (in the US) if you are 'moderate or low income' and have made income in 2010.  That's right, you could qualify to get a substantial credit just for working!

Moderate or low income covers more people than you'd think-I happily took advantage of the EITC last year and a received a $400 tax credit!  (Please note: a tax credit is different than a refund.  A tax credit is a reduction of what you may owe and a refund is the $ you will receive back if you qualify).  Some family members of mine received an $800 tax credit each last year because of the EITC!  

If you want more info please go to the IRS website: http://www.irs.gov/individuals/article/0,,id=96406,00.html

I say 'please' because last year I spoke with an IRS rep. who said that the US Federal Govt. is thinking about getting rid of the EITC because not enough people are aware of it and using it!  The horror!!! 

Please use this so we don't loose it!  It's the clever thing to do ;)