The Earned Income Credit in 2014 - See if You Qualify
The earned income credit, or EITC, is a tax credit that must be earned from employment, self-employment, or another source of employment, and it must meet certain rules and regulations.
Additionally, those seeking to partake in the EITC must meet the additional rules for workers without a qualifying child, or have a child in your household that meets the qualifying child rules.
What is Earned Income?
There are two ways to earn income, and that is either work in a business that you own or run, or work for someone else who pays you money.
Taxable earned income includes everything from wages, salaries, tips, and other taxable pay models, long-term disability benefits that are received prior to minimum retirement age, net earnings from self-employment if you own or operate your own business, and gross income received as a statutory employee.
On the other hand, there are certain things that will not qualify as earned income - and those include pay received for work as an inmate at a correctional facility, interest and dividends gains, retirement income, social security, unemployment benefits, alimony, and child support.
Rules for Receiving the EITC
Quite simply, if you and your spouse (if filing together) meet the EITC table rules and are paid in a manner state above, and you have a child who lives with you, you likely meet the basic requirements for the EITC with a Qualifying Child.
Your child must pass the residency, age, relationship and joint return rules to be noted as your qualifying child (all four tests must be passed), but this is a pathway to qualifying for the earned income tax credit.
Additionally, if you are without children, you (and your spouse) likely meet the EITC rules if your income is derived from one of the acceptable methods above without a qualifying child.
It should be noted that there are also special EITC rules for members of the military, ministers, people who are receiving disability benefits in the long-term, and even people who are impacted by natural and man-made disasters.
Earned income tax credits can go a long way to helping ease the tax burden, and the best thing is that so many people qualify for them, whether they realize it or not. See the EITC Tax Credit Tables and find out if the income you've earned over the past year would qualify you for the earned income tax credit so you can take advantage of easing your tax burden in 2013, 2014.
It is easy, simple, and straightforward to do, and it can end up saving several thousand dollars with just some simple credit notations added to your tax paperwork.
How TurboTax Can Help
If you file your taxes with TurboTax they will ask you a few simple questions to insure that you get all of the tax deductions and credits that you qualify for. If you would like to see how much your tax refund will be, they also have a free tax refund calculator available.