Earned Income Tax Credits are allowed to those who fall with in low to medium income category and especially to those having children under the US Tax Law. The percentage of the credit depends on the income earned by the individuals and also on the number of children they have to rear. To learn more about this, please visit: http://www.examiner.com/article/eic-tax-table-for-2012-2013
What does EIC tax table show?
The EIC tax table for 2014 shows the estimate of credits that have been received by individuals. The tax table can be found on the 1040 tax form. The percentage is dependent on the earnings from the very first dollar and goes up till the credit reaches its highest limit. Since then it goes constant and as the income rises beyond the maximum credit limit, it starts to fall as there is a rise in every dollar. The credit is refunded fully and the excess amount is paid as tax. The general qualifications for the American families to file for the tax credit include possessing a social security number, income should come from some form of employment and that would include self employment, the applicant should be a citizen of the US or a resident alien or a non-resident alien who is married to an US citizen.
How EIC has played a vital role?
The EIC has played an important role in encouraging single parents to take up jobs for the sake of their children. But the individuals earning foreign income cannot file a form. The person who would be filing the form must have qualifying child who would be related to him or her by marriage, by birth, adoption or through foster means. The qualifying child has to be under 18 years old or has to be a full time student and within 23 years of age. A person can also claim the tax benefits if he or she has another person who completely disabled and is dependent on the filer.
In case of separated couples or any two people putting a claim on the same child, then in order to avoid such confusion, it has been provided that the person, with whom the child has lived for 6 months at the least, would be able to file for the Earned Income Credit. The age of the person who would be claiming for the qualifying child should be between 25 to 64 years of age. The EIC Tax Table may be different for different years and the tax calculations and qualifications though are same as the federal version, should still be checked upon before filing.