Tax Season Tips - Earned Income Tax Credit

(HEARTLAND WEEKEND) - Tax season is here, and one tax credit that’s often overlooked could mean a tax break or up to $6,500 added to your refund.

Dr. Stephanie Yates, Professor and Chair of Accounting and Finance at the University of Alabama Birmingham, says several tax credits are available. A tax credit, she says, “is a dollar-for-dollar reduction in your tax bill.”

The Earned Income Tax Credit, meant for low-to-moderate-income workers, is refundable. People that make less than $57,414 and meet other criteria can use the EITC for a tax break or increase their refund. There are several rules to qualify for the EITC, which depend “on your income, your filing status, and the number of children you have.”

You don’t have to have children to be eligible for the credit”, Dr. Yates explains, “that’s just going to impact how much of a credit you might get.”

Not everyone is aware of the Earned Income Tax Credit. Dr. Yates says that “only four out of five

taxpayers claim it.” She encourages taxpayers to work with their tax preparers to check their eligibility.

Visit irs.gov to learn more.

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