IRS problems aren't as complicated as they look once you see the structure. I'm attorney Darrin Mish. I've represented taxpayers before the IRS for three decades \u2014 in Florida, Colorado, Texas, and internationally. Here's the plain-English breakdown.<\/p>\n
The Earned Income Tax Credit (EITC) is for you if you earn $49,078 or less per year. Every year, the IRS gives publicity to the EITC and encourages those who are eligible to make their claims. According to IRS Commissioner Doug Shulman, \u201cThe EITC provides a financial boost for millions of hard-working Americans. But people can easily overlook this important credit, especially if their financial situation has changed\u201d.<\/p>\n
One-third of those who are eligible to claim the EITC experience changes in terms of their financial, marital and parental status. The amount you can receive under the EITC differs from person to person depending on income, filing status and size of your family. According to the IRS, one out of five persons who are eligible to claim the EITC does not receive it either because they did not claim it or did not file their tax return at all. To find out if you are eligible to claim the EITC, visit the IRS website and use the EITC Assistant feature. All you need to do is answer a few questions.<\/p>\n
Generally, the EITC is for those who earn not more than $49,078 from wages, self-employment or farm income last year. If you are eligible for the EITC, you should be able to take home more in tax refunds. If you have three or more eligible children, it could amount to as much as $5,751 in credit.<\/p>\n
Another great feature of the EITC is that it is a refundable credit, meaning even if you do not owe taxes, you can claim a tax refund, if you are eligible. Last year, the taxpayers who claimed the EITC took home an average of $2,200 per person.<\/p>\n
In order to make a claim of the EITC, you must submit a tax return and make your claim even if you are not taxable. There are a three options open to you to submit your taxes.<\/p>\n
You can utilize the Free File function of the IRS. The Free File function is in the IRS website (www.irs.gov) and uses free software that allows you to prepare your returns and claim credits and deductions for which you are eligible.<\/p>\n
Alternatively, you can go to more than 12,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) venues. There are volunteers who assist you in preparing your tax returns. To locate the VITA or TCE venue closest to you, call the IRS at call the IRS at 800-906-9887.
\nThe third option in preparing and filing your taxes is going to the IRS office itself. Locations of IRS Taxpayer Assistance Centers are listed online at www.irs.gov.<\/p>\n