An important line on your 1040 tax form
By Connie ThompsonEvery year, thousands of people overlook an important line on their 1040 tax form. MultimediaThat's line 64a, or earned income credit for people who don't make a lot of money. It gets a little complicated, but here are the basic qualifications. You have to be a U.S. Citizen, employed during 2009, with an income of less than $48,729. There are specific income ceilings based on your individual household setup - single, married, qualifying dependents, etc. Say you're single with no children under age 19, and your earned income last year was $31,000. Based on a sample estimator your estimated credit would be about $709. Or say you're married and filing jointly with three children under age 19 and you earned $45,000. The estimated credit would be $686. Remember, this is just an estimate. You have to do the exact calculations to know for sure. The point is, if you qualify, the EITC could lower your tax, or help you get a bigger refund. "It's a refundable credit," said David Tucker of the IRS. "Meaning that, if your tax liability, after you've done all your deductions is zero, and you still have that credit, then that credit is paid to you." But according to the IRS, that credit is ignored by one in four taxpayers who qualify. The earned income credit is expanded this year to cover three children instead of only two. But even if you don't have to have kids, depending on your income, you can get an earned income credit with no children. For more information: |
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February 9, 2012
- Roseburg, Oregon
