Guest Author - Lili Pintea-Reed
I joked on day to a friend who works for a major tax preparation service about their adds claiming to save people hundreds on their income taxes. "How can you claim such a thing?" I asked.
"FORM EIC," she answered simply.
This form when filed will save the average working family many hundreds of dollars on their income taxes. It will save people who supplement fixed incomes with some form of labor like baby sitting, or lawn cutting, etc. with an additional stipend of several hundred dollars. The Basic Qualifying Criteria are listed below.
EIC Basic Qualifiers:
Is your total earned income:
at least -- $1
but less than:
a) $11,490 ($12,490 for married filing jointly) if you do not have a child,
b) $30,338 ($31,338 for married filing jointly) if you have one child
3) $34,458 ($35,458 for married filing jointly) if you have more than one child
(See Rules 7 and 15.)
If you are in the group above, then please file form EIC. You can get hundreds of dollars in tax savings, or a stipend if very low income.
To check go to the USA IRS site at:
http://www.irs.gov/publications/p596/apc.html
Here are some examples:
Mary:
Mary is a retired woman living on her social security income of $7,000 a year. In addition she makes money occassionally as an after school baby sitter for an additional $1000 a year.
Because she did labor of some sort to earn income in addition to her Social Security Income she qualifies for EIC. Her EIC would be a stipend of:
$265
John and Sue:
They are young married couple with two children. Both working, they make $25,000 a year. They would qualify for a stipend of:
$2,208
Monica:
Monica is a divorced single mother with one child. Her ex-husband has not paid his child support, so they live on her minimum wage income of $10,400 a year.
She would qualify for a stipend of:
$2,604
These are not small sums of money! MAke sure and collect the sum owed you!
1) If you qualify please remember to file! And if you forgot, you can re-file your returns for up to three years prior!!
2) For More details on filing this year, Please Check out the fine Online Form at:
http://www.irs.gov/pub/irs-pdf/p596.pdf
3) You can get part of your EIC for THIS year by Filing Form W-5.It will be added to your pay check.
Just click on the link below to print the form to give your employer.
Form W-5
If you have a tax question, visit your local IRS Office, or call 1-800-829-1040. I warned them I was writing this article and they said they would be happy to answer your questions.
If you think you qualify, please call the number below to get free advice on how to re-file your taxes to collect the EIC you forgot to apply for. You can re-file back to three years prior. The process is VERY easy.
Various companies Offer Free Tax Software and some free efiling. It depends on many facors (age, senior status, income level), so you have to check each offer. Some require you pay for the efile or state forms.They are listed here:
http://www.irs.gov/efile/article/0,,id=118986,00.html
Get your Refund in Two Days. They also allow the credit payments, and file the easy-pay arrangements for people who owe taxes:
2-Day Tax Refund Loans
E/file!!! Free no fee to efile. They also allow the credit payments, and file the easy-pay arrangements for people who owe taxes
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