Prepare accurate tax returns for people who claim certain tax credits, such as the: Earned Income Tax Credit (EITC) - Helps low- to moderate-income workers and families get a tax break. Child Tax Credit/Credit for Other Dependents (CTC)/(ODC) – Provides a tax benefit for families with a qualifying dependent child and families with dependents ...

Jan 11, 2025 · Income limits and amount of EITC for additional tax years. See the earned income, investment income, and adjusted gross income (AGI) limits, as well as the maximum credit amounts for the current, previous and upcoming tax years.

Dec 10, 2024 · The income limits for earned income, adjusted gross income and investment income are adjusted for cost-of-living each year. Find the dollar amounts here. To Claim EITC With a Qualifying Child, the Child Must Pass All of the Following Tests: Relationship A son or daughter (including an adopted child or child lawfully placed for adoption) Stepchild

EITC has played a crucial role in lifting millions of low- to moderate- income workers out of poverty for 50 years. The Tax Reduction Act of 1975 introduced EITC as a modest tax break to provide financial help to economically challenged families and encourage work. Claiming the credit can reduce the tax owed or may also give a larger refund.

If you qualify for the federal EITC, you may also be eligible for a similar credit from your state or local government. Twenty-eight states, plus local municipalities including the District of Columbia and New York City, offer residents an earned income tax credit for 2024. You can determine your eligibility and file and claim your EITC for free:

Form 14801, Child and Dependent Care Credit-Explanation of Items; Form 14815, Supporting Documents to Prove the Child Tax Credit (CTC) and Credit for Other Dependents (ODC) for 2018-2020 and 2022-2025 PDF; Form 886-H-ITIN, Dependent-Related Tax Benefits and Credits—Explanation of Items (for tax years before 2018) More tools and tips

Jan 22, 2025 · The special rule for divorced or separated parents allows only the noncustodial parent to claim the child as a dependent for the purposes of the child tax credit/credit for other dependents and the dependency exemption and does not apply to the EITC. For more information, see Publication 501, Dependents, Standard Deduction, and Filing Information.

3 days ago · Recordkeeping is important for those who are self-employed to determine if they are eligible for the EITC. In Tax Tales: The Case of the Teased Up Records, the preparer talks with Mrs. Davis about how to reasonably reconstruct records for her hair styling business to meet EITC due diligence requirements, and determine if she is eligible for the credit.

Jan 27, 2025 · See Publication 596, Earned Income Credit, and the Instructions for Form 1040 and Form 1040-SR, U.S. Individual Income Tax Return, for more information. SSN requirement You and every child claimed for the credit must have an SSN that is valid for employment and was issued before the due date of the return (including extensions).

Oct 15, 2024 · If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A PDF. You may fill out Form 3949-A online, print it and mail it to: Internal Revenue Service Fresno, CA 93888. If you do not wish to use Form 3949-A, you may send a letter to the address above.