Earned Income Tax Credit Helps Many Families Save Money
No matter your attitude toward paying taxes to fund government programs, few people want to pay more in income taxes than they have to. With the proper advice and attention to the law, the average taxpayer should be able to find deductions to which they are entitled, and avoid an IRS audit.
As ABC News reports, one of the most important deductions available under federal tax law is the earned income tax credit. This credit gives couples with children who are low- to moderate-income a break on their tax bill. Depending on the couple’s situation, the credit could be worth hundreds or even thousands of dollars.
In addition, the earned income credit is a refundable credit. This means that, if the credit is larger than the couple’s tax bill, the difference goes to the couple.
Surprisingly, a lot of people who are eligible for the earned income tax credit do not claim it. One important rule is that the couple claiming the credit must have a joint annual income of no more than $52,000.
Figuring out your income taxes can get confusing. Some people make mistakes, or they hire a professional to handle it, and the professional mishandles their taxes. Audits and threats of criminal charges can later arise, making it a scary and confusing time for the taxpayer.
However, a taxpayer in this situation has rights and options, even going up against the mighty IRS. A tax attorney can help contest the IRS’ claims, negotiate a settlement, and help the client move on with their life.