How To Get A Low Income Tax Credit
If you want extra cash from Uncle Sam, then you need to know how to get a low income tax credit. Low income tax credit, technically know as Earned income tax credit, can benefit you greatly each tax year if you are eligible to be in the low income category. While not everyone may be eligible for this the low income tax credit, those who do qualify have a good chance of getting some of the low income tax credit.
- Know the purpose of low income tax credit. The low income tax credit, or earned income tax credit was put in place to encourage people to get low income jobs, as oppose to not doing anything at all. It lessens the burden these people put on the tax and welfare system. With that said, let's move to the next step.
- Where can you get low income tax credit? Well, most people point their figure to the federal government when they think of tax, but in fact, you can actually get low income tax credit from twenty other states and the District of Columbia. Most of the states' low income tax credit mimics the federal version. Although, there are differences. You need to check with your state tax website for more specific detail.
- Understand the eligibility rules. This is the most complicated part of the process. There is the federal requirements and 21 other versions in the states and District of Columbia. Factors, such as marriage and children, are also important part of the equation. The Internal Revenue Services has a great tool to determine your eligibility. You can also use computer tax software or tax professionals if you are not savvy with computers.
- If you are in the low income group, there are computer software and tax professionals from non-profit organization to do your tax, and find low income credit for you free of charge. Use them!