Tax Tip: Don’t Ignore the Earned Income Tax Credit
(NEW YORK) — It’s a big tax credit many people ignore: the Earned Income Tax Credit.
The first thing to remember about it is that “you can get money back even if you don’t owe any tax and even if no tax was taken out of your paychecks,” says Eric Smith of the Internal Revenue Service.
He tells ABC News Radio, “If you’re trying to make ends meet on about $52,000 or less you may qualify for this credit.”
The credit is for wage earners and their families, and it’s especially important for workers with low or moderate income.
“This is for people who have W2 income or maybe they run a farm or a small business,” Smith says.
So how much money could you get from the Earned Income Tax Credit?
“The amount of the credit varies depending on your income level, family size and marital status,” explains Smith.
If you have unearned income or money from a pension you don’t qualify.
Copyright 2014 ABC News Radio