IRS Tax Tip 2009-20 introduces ten things you may not know about the earned income tax credit. The following is a brief overview:
1. A quarter of all taxpayers that qualify don't claim the credit.
2. If you qualify, it could be worth up to $4,800 this year.
3. Your filing status cannot be Married Filing Separately.
4. You must have a valid Social Security Number.
5. You must have earned income.
6. Married couples and single people without kids may qualify.
7. Special rules apply to members of the U.S. Armed Forces in combat zones.
8. You can visit the IRS Web site to estimate your credit online.
9. E-file programs will figure the credit for you.
10. Advanced Earned Income Tax Credit.
For more information about the EITC and Advance EITC see IRS Publication 596, Earned Income Credit. This publication (available in both English and Spanish) and Form W-5 can be downloaded from IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).
Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal.
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