The EITC or Earned Income Tax Credit, is a benefit for working people who have low to moderate income. Millions of taxpayers who earned $53,505 or less last year may qualify for EITC for the first time in 2017.
If you are self-employed, a farmer, or another type of worker and earned $53,505 or less last year, you could receive a larger refund if you qualify for the EITC. If you have three or more qualifying children, you could get a maximum credit of up to $6,269. Unlike most deductions and credits, the EITC is refundable. In other words, if you are eligible you may get a refund from the IRS even if you owe no tax. Last year, more than 27 million eligible workers and families received almost $67 billion in EITC; with an average EITC amount of more than $2,455.
The IRS recommends that all workers who earned around $54,000 or less learn about EITC eligibility and use the EITC Assistant to find out if they qualify. The tool will help you to determine if you qualify to receive the EITC and estimate the amount of the credit you could get. Remember, to get the EITC, you must file a tax return and specifically claim the credit.
A new law approved by Congress requires the IRS to hold refunds claiming the EITC and the Additional Child Tax Credit (ACTC) until Feb. 15. By law, the IRS must hold the entire refund — even the portion not associated with EITC or ACTC. This change helps ensure taxpayers receive the refund they are owed by giving the agency more time to help detect and prevent fraud.
Most Americans file a tax return because they are required to. Even if you don’t have to file, there are times you should anyway. You might be eligible for a tax refund and not realize it.
Here are five tips to help you decide whether to file a tax return:
Instructions for Forms 1040, 1040A or 1040EZ list income tax filing requirements. You can also use the Interactive Tax Assistant tool on the IRS website. Look for “Do I need to file a return?” under general topics.
What Employers With Fewer Than 50 Employees Need to Know About the Affordable Care Act
As a business owner, the number of people you employed during the last year determines which portions of the health care law apply to your business. If you have fewer than 50 full-time employees, including full-time equivalent employees, there are three key items you should know about how the Affordable Care Act affects you.
If you offer employer-sponsored, self-insured health coverage to your employees, you will use Form 1095-B, Health Coverage Information Return to report information to covered individuals about each person enrolled in coverage. The deadline for filing this form with the IRS is February 28, 2017, or March 31, 2017 if filing electronically. The deadline for furnishing this form to the covered individual is March 2, 2017, which is a 30-day extension from the original due date of January 31.
You may be eligible for the small business health care tax credit if you meet all of the following conditions. You:
Shared Responsibility Payment
If you employ fewer than 50 full-time employees, including full-time equivalent employees, you are not subject to the employer shared responsibility provisions.
2016 Tax Tips
Key 2016 Tax Highlights: What you need to know for the upcoming tax season.
6 Signs of Identity Theft
No matter how cautious you are, identity thieves might be able to steal your personal information. When thieves manage to do that, they try to quickly turn that data into cash by filing fraudulent tax returns.
Watch out for these signs that you may be a victim of tax-related identity theft: