Federal Grants First Time Home Buyers » Federal Home Buyers Tax Credit

Married And Filing For The Earned Income Tax Credit

When trying to qualify for the earned income tax credit you or your spouse must satisfy the age test if filing a joint tax return. You can not be a dependent of another taxpayer, and are not a qualifying child of another taxpayer.

If married and filing a joint tax return you must include your social security number on your IRS tax return and that of your spouse. Married couples who file separate returns are not eligible for the earned income credit. If you are married, but your spouse did not live in your home for the last six months of the year, you may be able to file as head of household and take the credit. If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income.

If you are not married and did not earn any income for the year, you are not eligible for it. You might be able to claim the credit as head of household if you lived apart from your spouse for the last half of the tax year.

Other Types Of Earned Income Credits

Your filing status determines the income levels for your federal tax bracket. Low and moderate income families may qualify for one or more of three federal tax credits. The Child Tax Credit, the Earned Income Credit, and the Child and Dependent Care Credit. The Child and Dependent Care Credit differs from both the Earned Income Tax and the Child Tax Credit. If your family earns too little to pay federal income taxes, you cannot take the Child and Dependent Care Credit. The reason is because if you are not entitled to pay any taxes the government is not going to give you money back.

Bankruptcy Laws and The Earned Income Credit

If you have ever filed for bankruptcy you still want to file for the tax credit. Unfortunately, when a low earning individual files Chapter 7 or 13 bankruptcy, that earned income credit is often awarded to the bankruptcy trustee. In the bankruptcy case, the credit might not amount to much but you still want to make sure you are getting every credit you can get.

If you are married and filing for the earned income tax credit you will want to file jointly. Some eligible taxpayers can receive the credit even if their tax is zero. This is how you will receive the largest credit. Be aware of other tax credits such as the Child Tax Credit and the Child and Dependent Care Credit. One of the benefits of having kids is the ability to take advantage of tax credits so you might as well read up on those too. If you did have to file for Chapter 7 or 13 bankruptcy your earned income credits will be affected and will be awarded to the trustee. You still want to apply for these because it will lower your overall liabilities.

Brad writes about issues involving taxes Find more information about earned income tax credits at Earned- Income-Credit.com

Source: www.articletrader.com