filteredminds (filteredminds) wrote in thefairtax,
filteredminds
filteredminds
thefairtax

Can I deduct an Earned Income Credit on my tax return?



Question: Can I deduct an Earned Income Credit on my tax return?

Answer: The earned income credit is a special credit which lower income workers can deduct on their tax return. The earned income credit can be claimed on a tax return not only by workers with qualifying children, but also by workers with no children under certain circumstances. The earned income credit reduces the amount of tax you owe (if any) on your tax return and is intended to offset some of the increases in living expenses and social security tax. The earned income credit is not a tax deduction; it is subtracted directly from the amount of tax you owe on your tax return, so you end up paying less tax and you may get some money back from the government. Even if you had no tax withheld or do not owe any tax to the IRS on your tax return, you might still get some money back because the earned income credit is a "refundable credit".

The earned income credit can be claimed on Form 1040EZ, however, several requirements must be met. If you do not meet all of them, you must use Form 1040A or Form 1040. For additional information on the tax requirements, refer to Tax Topic 352, Which Form - 1040, 1040A or 1040EZ.

For more free Information on how to resolve IRS Tax Problems back taxes, please visit www.TheTaxAttorney.org

  • Post a new comment

    Error

    default userpic
  • 0 comments