Tag Archives: credit

Understanding the Child & Dependent Care Tax Credit

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Childcare is perhaps the steepest monthly expense many families can not shy away from. Parents or custodians are left with no choice than to pay for daycare for their infants or disabled adults under their care. However, families who are struggling to keep up with this ever-increasing bill can get a bit of respite from the IRS according to a recent post by the National Tax Reports. The post sheds light on the child and dependent care tax credit and how taxpayers can take advantage of this credit to cover the cost of their childcare.

The Child and Dependent Care Credit can cover a percentage of daycare costs up to a maximum of $3,000 for one dependent and it is capped at $6,000 for two or more dependents. This percentage can range from 20% to 35% of the taxpayer’s adjusted gross income. National Tax Report recommends using a free dependent online calculator to quickly estimate your credit amount. The online software will only ask simple questions about your family so as to ascertain who qualifies as a dependent on your tax return to help you get the biggest tax return.

There are just a few basic requirements to be met in order to qualify for the child and dependent care tax credit. First off, taxpayers must have a dependent child less than the age of 13 or an older child who is physically or mentally unable to care for himself due to disability. The purpose of paying child care for these dependents must be to allow both parents to work or get a job or attend school on a full-time basis. It is also expected that both parents must have earned income either from a job or through self-employment. The only exception to this is if one of the parents is disabled and incapable of caring for another person.

There are also rules concerning daycare. The person providing the daycare must not be listed as a dependent of the taxpayer. Summer day camps qualify as providers while overnight camps do not qualify. This is because the IRS does not think an overnight camp as a form of work-related expense.

For more information about the Child and Dependent Care Credit, please visit, https://nationaltaxreports.com/eligible-for-child-dependent-care-tax-credit/

The Earned Income Credit – A Valuable Tax Credit for Americans

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Without doubt, the Earned Income Tax Credit (EITC) is the most valuable credit for working parents with a low to moderate income. It offers the potential to lower their tax bill beyond $0 so they can get a refund from the IRS. In a new post, Efile Tax Advisor offers all the information taxpayers need to understand how the EITC works. Taxpayers will find out what they need to qualify for the EITC and exactly how to claim it should they qualify.

To claim the EITC, taxpayers must first earn some form of income. The earned income must be either equal to or below $54,884 for the tax filing season they are applying for. They must also file a federal tax return regardless of whether they pay any taxes or not. Taxpayers do not need to have a qualifying child or dependent to claim the EITC.

Taxpayers who qualify to claim the EITC can do so either as a single taxpayer or married but filing jointly. When claiming the EITC, anyone mentioned as a dependent or qualifying child must have a separate social security number and this must be stated. And each qualifying child can only be claimed on a single Federal tax return per year.

There are free tax filing services available to people who would like to claim the Earned Income Credit. Efile Tax Advisor recommends using The TurboTax Free File feature as it is easy to use. It will only ask some basic questions like the total earned income, number of children or dependents and a few lifestyle questions. The site also recommends using any of the IRS volunteer programs across the country as they also offer free tax help.

For more information about the Earned Income Tax Credit (EITC), please read the original blog post by Efile Tax Advisor here, https://efiletaxadvisor.com/2019/04/15/how-the-eitc-supports-low-and-middle-income-americans/

Easily Figure out the Earned Income Credit Table Amounts

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Considered one of the most significant tax credits in the entire IRS tax code, the Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate income working families, particularly those with children. A huge number of families are eligible to claim a dependent tax credit every year because of their income and the number of household dependents they have. However, many of these eligible families fail to claim the credit. To help many eligible American families take advantage of the EITC, Efile Tax Advisor, an online Tax Filing Advice and Recommendations platform break down the earned income tax credit chart table and how much can be claimed back in taxes this year.

With the EITC, how much that can be claimed depends on the adjusted gross income and how many dependents exist in a household. Filing as a single taxpayer or jointly if married will affect the adjusted gross income rather than the maximum credit. Single taxpayers must have an adjusted gross income of less than $15,270, whereas married taxpayers filing jointly must have an income of less than $20,950.

The maximum credit that can be claimed for families without dependents is $519 while families with more than 3 dependents can claim as much as more as $6,431. The average payout will normally fall within these two figures. Trying to figure out exactly how much can be claimed could become a little complicated and Efile Tax Advisor recommends using an online EIC calculator. These calculators are mostly free to use and require just some personal basic information about the tax filer. They will then provide a rough estimate of how much can be claimed on your next tax return.

To find out more about the Earned Income Tax Credit, please visit, https://efiletaxadvisor.wordpress.com/2019/02/11/earned-income-credit-table-amounts/

New Child Tax Credit Calculator

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Families with children under the age of 17 will find a new guide on tax blog, Internet Tax Connection very resourceful. The guide sheds more light into one of the most valuable tax credits available to Americans. See Child Tax Credit changes. Readers will found out how much the child tax credit is worth and exactly how much they can claim using a child tax calculator.

Recent changes to the Tax Cuts and Jobs Act (TCJA) have seen the child tax credit now become a refundable tax credit up to a maximum amount of $1,400. The income limits have also been increased and more families in America with qualifying children now have the chance to claim the credit on the new 1040 tax form. The child credit can help families reduce their Federal tax bill by up to $2,000 for every qualifying child.

Families looking forward to take advantage of the child tax credit must have at least a child below the age of 17 at the end of the tax year. The child must also be a direct descendent of the filer, which goes all the way to grandchildren and adopted children. The other criteria are;

– More than half of the child’s financial support must come from the taxpayer.

– The child must be claimed as a dependent and each child can only be claimed as a dependent on a single tax return.

– The child must be a US citizen or a US resident alien.

– The child must have lived with the taxpayer for more than half the tax year.

Using a child tax credit calculator can help determine exactly how much can be claimed with the child tax credit, the additional child tax credit and the child dependent care tax credit. By following simple instructions and providing some basic personal and financial information, taxpayers will find out how much they can potentially claim in a matter of minutes.

For more information about the child tax credit and how to use the child tax credit calculator, please visit, https://internettaxconnection.com/try-the-new-child-tax-credit-calculator/

New Earned Income Credit Calculator

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The Earned Income Tax Credit (EITC) which goes to millions of lower to middle-income families helps to reduce poverty while also encouraging its recipients to work. A recent guide just published on the tax information journal, Internet Tax Connection shows how much the credit is worth and how to use the earned income credit calculator to figure out how much you could be owed this year.

The amount that can be claimed is found on the EIC tax table. The taxpayer’s yearly income and the number of qualifying children determine the amount. Qualifying children must be claimed as dependents through the Federal tax forms and can only be claimed once per year on a single tax form.

Any American looking to claim the maximum amount from the EITC table must have more than two qualifying children and will need to earn less than $45,802 if filing as a single taxpayer or $51,492 if filing as a married taxpayer filing jointly. Low-income families without children can also take advantage of the EITC. For these kinds of families, single taxpayers will need to have a yearly income below $15,270 and married taxpayers filing jointly will need to earn less than $20,950.

The EITC is a fully refundable tax credit and could be worth thousands of dollars. By using a step-by-step calculator such as the earned income credit calculator, taxpayers can easily find out how much they are entitled to this year. All they need do is answer a few questions to get an estimate of how much they could be entitled to in refunds.

To get an estimate of how much you could be owed this year in tax refunds, please use the Earned Income Credit Calculator Today here, earned income credit calculator

Child Tax Credit Calculator 2019 Launched

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The launch of Child Tax Credit Calculator has ensured that parents with kids under the age of 17 can make the most out of the benefits they can get from child tax credit with ease.

Child credit is known to reduce Federal Tax bill by up to $2,000 for every eligible child. The new Tax Cuts and Jobs Act has meant that most American families have the opportunity to claim this credit. However, the rules are strict, and it can be a tedious process.

That’s where the Child Tax Credit Calculator comes into the picture. It helps parents stay on top of calculations for credits they can claim in the year. It’s interesting to note that with changes in rules in December 2017, the credit is now refundable.

Users get information about guidelines to know if their child is eligible for tax credits. They also know how much credit they are eligible for. All they have to do is answer a few questions and they can be guided through a step by step process that leads to substantial benefits.

About Child Tax Credit Calculator

This calculator has been designed to help parents figure out how much child tax credit they can claim in a year simply and conveniently.

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Website: child tax credit calculator

Claim your Child and Dependent Care Tax Credit Today with H&R Block

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Paying for child care or adult dependent care is one of the costly monthly expenses many families face. But without care, your children can’t leave home to earn a living or go to school. Child and dependent care tax credit is a tax break you can grab if you paid for day care, summer camp or a sitter.

Childcare expenses keep rising and are approaching the cost of college tuition. By claiming your child and dependent care tax credit with H&R Block, you might be able to get back some of the money you spent on childcare expenses. H&R Block child and dependent care tax credit service is designed ultimately for individuals working with dependents to help offset the cost associated with going to work every day. You can also qualify if you cared for disabled dependents or spouses.

As working parents, child and dependent care tax credit can help you pay expenses for the care of your children, adult dependents or an incapacitated spouse. You can claim up to $3,000 in dependent care expenses for one child/dependent and $6,000 for two children/dependents per year. Child and dependent care tax credit is non-refundable; meaning that if a family does not earn enough money to owe federal income taxes, it cannot get a tax refund from the credit.

There are certain qualifications you have to meet in order to qualify for the child and dependent care tax credit. You must have at least one dependent child or adult who cannot provide their own care, you must be working and receiving an income, the child must be your dependent and under the age of 13, the child must also live with you at least half the year in the case where custody is split between parents or guardians, and the daycare center must be a qualifying provider for the credit.

Claiming your child and dependent care tax credit with H&R Block offers extraordinary experiences. H&R Block’s online tax filing services can efficiently import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail.

Claim Earned Income Tax Credit 2019

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With the National Tax Reports, you can know what Earned Income Credit (EITC) is, how it works, how to calculate your credit amount, and who qualifies for the Earned Income Credit.

The Earned Income Tax Credit is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. Some of the qualifications include having a valid social security number, having less than $3,400 of investment income for the tax year, being a U.S. citizen or resident alien all year, earning income and adjusted gross income within the IRS limits, and more. The Earned Income Tax Credit reduces the amount of tax you owe and may give you a refund.

The Earned Income Tax Credit only benefits working families – families with children receive a much larger credit than workers without qualifying children. It provides extensive support to low- and moderate-income working parents, but very little support to workers without qualifying children. Workers receive a credit equal to a percentage of their earnings up to a maximum credit. Both the credit rate and the maximum credit vary by family size, with larger credits available to families with more children.

It is important to fully understand the qualifications for Earned Income Credit and calculate it accordingly. The National Tax Reports will provide you with timely, accessible analysis and facts about Earned Income Credit and how you can successfully claim it.

About National Tax Reports

The National Tax Reports is an independent tax policy research organization. The National Tax Reports’ principled research, insightful analysis, and engaged experts have published reports for United States; tax policy at the federal, state, and local levels.

For more information, please visit: https://nationaltaxreports.com/earned-income-credit-eic-table/

7 Child Tax Credit Requirements Explained

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child tax creditA tax credit to assist families with offsetting tax liabilities is the Child Tax Credit. The credit is capped at $1,000 per qualifying child. Determining eligibility is done automatically if you file your tax return electronically. There are seven pieces of criteria that you must meet before being able to claim the credit.

The steps to determine eligibility for the Child Tax Credit are:

  1. Age Test

Qualifying children must be age 16 or younger on December 31 of any given tax year.

  1. Relationship Test

In terms of relationship, the child to adult relationship must be one of the following:

  • A biological child
  • A stepchild
  • An adopted child (or in the process of adoption with proper paperwork)
  • A foster child placed by a court or proper authority agency.
  • Step-siblings that you care for
  • Nieces and nephews in your care
  • Grandchildren in your care
  1. Support Test

Parents and legal guardians must provide more than half of a child’s financial needs for an entire tax year to qualify.

  1. Dependent Test

To be able to qualify as a dependent, the relationship test must first be passed. The child cannot be over age 18, unless the child is still in school. If your child is still in school, they may qualify as a dependent until their 23rd birthday and must be a student, full-time, at least five months of the year. The child also qualifies if he or she has a permanent disability and age does not apply with permanent disability cases.

The child must also reside with you for more than half of the year and not have paid half or more of their own financial needs.

  1. Citizenship Test

Qualifying children must be U.S. citizens. They also qualify if they are a documented U.S. resident alien or U.S. national. U.S. national status is in regards to a person born in American Samoa or Commonwealth of the Northern Mariana Islands.

  1. Residence Test

A child must live with you for more than half of a tax year. If a child was born in or passed away in a tax year, they qualify as a living with you for the whole tax year.

Some special circumstances, such as military deployment/service, juvenile incarceration, and medical reasons count as time living with you. Also qualifying are business-related absences, school exceptions and vacation-related exceptions.

For separated parents with custody agreements, additional exceptions apply. These exceptions are addressed on lines 6c and 51 of your 1040. If you file a 1040A form, it is lines 6c and 33 to pay attention to.

  1. Family Income Test

If your adjusted gross income exceeds income thresholds, the amount of your Child Tax Credit is reduced.

The income thresholds are:

  • $55,000 for married filing separately
  • $75,000 for single, head of household, widow/widowers
  • $110,000 for married filing jointly

Reductions of $500 per $1,000 over the income threshold are in place.

Additional child tax credits are also available.