What is the earned income credit?

earnings loan is a credit that gives the return of federal income taxes. For some state levels and even in some municipalities there are also forms of earned income loan. Although the earned income loan is relatively small for individuals who have no children, for individuals with children, the loan can be quite considerable. The main purpose of earned income loan is to deal with poverty matters by providing a loan that offers great relative relief to those who earn small amounts earned every year.

In the United States, the earned loan is available for both qualifying persons with children and those who do not have. For those who do not have children, the credit is relatively small, with a maximum of $ 438 by US dollars (USD) for those who have an income between $ 596 and $ 6,999. Those who produce less or more than this parenthea have less income credit and no credit for those who earn more than $ 12,590.

For those who have children, earned income loan becomes much more important and a loan has been introduced for this group. For a group with a single child, there is a maximum earnings credit of $ 2,853 for those who produce between $ 8,392 and $ 15,399. Those who earn less than this amount have a smaller credit, equal to 34% of their income, and those who earn more than this amount have a smaller credit equal to $ 2,853 minus 15.98%. Those who earn more than $ 33,241 who have a single child are not entitled to any income loan.

People with two or more children qualify for even more credit. For those who have an income between $ 11,791 and $ 15,399, credit is $ 4,716. For those who do less, the credit equals 40% of their income and for those who earn more, equal $ 4,716 USD minus 21.06% of their income. People earn more than $ 37,783 who have two or more children are not entitled to any credit for income. InEqually that people are serving together, the range of plateau expands another $ 2,000, so the couple would qualify for maximum credit with one child and a combined income of up to $ 17,399 and qualify with two or more children and combined income up to $ 39,783

Many things disqualify a person from receiving earned credit income because it is designed primarily to help families with low incomes. For example, any person or a couple with more than $ 2,900 in investment income is unable to obtain earned income credit. Every participant, including claimed children and people entitled, must have a valid social security number. And anyone who hopes to receive credit had to stay in the United States for more than half the tax year for which it occurs, except for those who served a tour of services in the armed forces that have been taken for more than half a year.