Tag Archives: income

The New Federal Income Tax Brackets – Find Your Tax Bracket

Posted on by
Reply

Every year the IRS tweaks the federal income tax brackets to accommodate changes in inflation and this year 2019 is no different. This is mostly done to prevent inflation from pushing people into higher tax brackets known as the bracket creep. And up to 40 different provisions are taken into account to stop this from happening. Confused? Don’t know how this is set and which federal income tax bracket you fall in? A new post on Efile Tax Advisor clears all the confusion and provides all the information you need to find out which tax bracket you fall in this year 2019.

As long as you earn a taxable income, you will be automatically taxed at the standard rate of 10% irrespective of your filing status. Single taxpayers will need to earn a taxable income of $9,700 to fall within the 12% bracket. They will move into the 22% tax bracket if they hit $39,475 and can end up in the 24% tax bracket once they make as much as $84,200. But for Married taxpayers filing jointly, they will fall within the 12% bracket when their earnings are up to $19,400. They then move to the 22% tax bracket when they reach a $78,950 income and finally will move into the 24% tax bracket when they make a joint taxable income of $168,400.

The tax bracket is calculated different for high-income earners and depending on their income, their tax bracket range will fall within 32% to 37%. Also, long-term capital gains are calculated differently from other forms of income. The rates are 15% on $39,375 for single taxpayers and $78,750 for married taxpayers filing jointly. This could rise up to 20% for single taxpayers gaining $434,550 and $488,850 for married taxpayers filing jointly.

Credits and deductions can force low and middle-income taxpayers into lower tax brackets since these brackets do not consider them. It is best to make use of online tax preparation software to file taxes to ensure you are making the most of every tax credit and deduction.

For more information about the IRS tax brackets and to find out which tax bracket you fall into, please read the original blog post by Efile Tax Advisor here, https://efiletaxadvisor.com/2019/04/17/irs-federal-tax-brackets/

The Earned Income Credit – A Valuable Tax Credit for Americans

Posted on by
Reply

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

Posted on by
Reply

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 Earned Income Credit Calculator

Posted on by
Reply

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

Claim Earned Income Tax Credit 2019

Posted on by
Reply

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/