PENSACOLAFLTAX.COM
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
  • Home
  • QuickBooks Accounting
    • Payroll Processing
    • Accounting
    • Bookkeeping
    • QuickBooks Services >
      • QuickBooks Set-up
      • QuickBooks Training
      • QuickBooks Tune-up
      • QuickBooks Hybrid Bookkeeping
    • CFO Services
    • Non-Profit Organizations
    • Security
  • Income Tax Services
    • Virtual Remote Tax Service
    • Business Tax
    • Personal Tax
    • IRS payments and Problem Resolution
  • Blog
  • Contact
  • New Business Formation
  • Q&A
Search by typing & pressing enter

YOUR CART

McVay Business Services - Accounting & Tax Services Pensacola, FL

2/2/2020

The Tax Break the IRS Is Begging You to Take

Picture
The Tax Break the IRS Is Begging You to Take
Millions of taxpayers are eligible but choose not to claim the thousands of dollars this tax credit offers.
Most Americans' goal during tax season is to pay as little tax as possible, and ideally to get a refund that's as large as you can get. Unfortunately, preparing taxes is complicated, and the complex laws governing taxation are so challenging to navigate that many taxpayers end up not claiming tax breaks that could put thousands of extra dollars in their pockets.
It might come as a surprise to learn that the IRS actually wants to encourage taxpayers to take tax breaks, but that's exactly what it's doing on Jan. 31. With the 14th installment of its annual EITC Awareness Day, the tax agency wants to make sure everyone knows about the benefits of claiming the earned income tax credit -- a tax break that it believes 6 million eligible taxpayers leave untouched.
Image source: Getty Images.
How does the earned income tax credit work?
The EIC Credit helps workers with modest income levels save on their taxes. For the 2019 tax year, credit amounts can be up to $6,559 for taxpayer families with three or more children, and smaller limits of $5,828, $3,526, and $529 apply to those with families of two, one, or no children, respectively. Below, you'll see the income limits that apply to the credit for 2019, putting an upper bound on how much money you can make and still receive a portion of the credit amount.
Filing Status
Income Limit if No Children
Income Limit if 1 Child
Income Limit if 2 Children
Income Limit if 3+ Children
Single, head of household, or widowed
$15,570
$41,094
$46,703
$50,162

Married filing jointly
$21,370
$46,884
$52,493
$55,952

Data source: IRS.
Best of all, the earned income credit is a refundable credit. That means that even if you otherwise wouldn't owe any tax, you can still file a return and get a refund back that includes the credit amount. That's a fairly unusual tax break, and it's one that can sometimes justify filing a tax return even if you wouldn't ordinarily be required to do so.
Why is the IRS promoting the earned income tax credit?
The sad thing about the earned income tax credit is that so many people don't choose to claim it. The IRS estimates that 25 million taxpayers received the earned income tax credit last year, with the average amount received coming in just over the $2,500 mark. However, one out of every five eligible taxpayers failed to claim and receive the credit. Doing the math, that leaves roughly 6.25 million taxpayers having missed out.
IRS Commission Chuck Rettig explained the rationale for the IRS outreach effort:
The EITC is a vital tax credit that helps millions of hard-working working families around the nation. It's critical that people review the credit to see if they qualify. Increasing awareness about the EITC is important, and the IRS is proud to support the ongoing efforts by partner groups across the country for sharing this critical information with taxpayers.
In particular, the IRS identified several groups of taxpayers who are most likely to miss out on the credit. They include the following:
  • Those without children.
  • Those who live in nontraditional families, such as where grandparents are raising grandchildren
  • Those who saw their filing status or income change.
  • Those with limited English skills.
  • Members of the Armed Forces.
  • Those who live in rural areas.
  • Native Americans.
  • People with disabilities or who care for those who are disabled.
Get what's coming to you
If you qualify for the earned income tax credit, make sure that you claim it. There's no reason to pass up hundreds or even thousands of dollars added to your tax refund. The IRS EITC Website provides a tool to help you figure out if you qualify and what the amount of your credit would be. With even the IRS wanting you to take advantage of the credit, it's worth the time as you're preparing your 2019 tax returns to check and see if you qualify.
​
McVay Business Services
Mike McVay, Tax Accountant
5336 N Blue Angel Pkwy
Pensacola, FL 32526
850-725-5696
Mike@MikeMcVay.com

    Mike McVay, Tax Accountant Blog
    Certified ​QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL

    Best Price
    ​No Compromise

    Picture

    Author

    Mike McVay, Accountant Experienced IRS Tax Resolution Specialist
    With over 20-years experience working with individuals, families & small business owners. McVay has long term knowledge in taxation to help with their income tax, I.R.S tax issues and businesses management.
    850-725-5696​
    Mike@MikeMcVay.com

    Book An Appointment

    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    August 2015
    July 2015
    February 2015
    January 2015
    December 2014
    November 2014

    Categories

    All

 ©2021 this website and all of its sub domains are owned and operated by
​McVay Consulting Services Inc. dba McVay Business Services
All Rights Reserved · Privacy Policy in place.
Pensacola Tax Services,Payroll,Accounting & QuickBooks Services
Mike@MikeMcVay.com
​850-725-5696

5336 N. Blue Angel Parkway
Pensacola, FL 32526

Client Portal Login

Subscribe to our newsletter