This 2023, Earned Income Tax Credits (EITCs), will continue to assist every struggling family with some financial breathing room.
Here’s How To Claim Your 2023 Earned Income Tax Credit (EITC) (PHOTO: Brookings)
2023 Earned Income Tax Credit (EITC)
In claiming your 2023 Earned Income Tax Credits (EITCs) will depend on the size of your household and the checks can be sizable up to $3,417. Moreover, certain qualifications must meet such as qualifies as earned income and meet certain adjusted gross income (AGI), and credit limits for the current, previous, and upcoming tax years.
You can also utilize the EITC tables to look up maximum credit amounts by tax year. If you are uncertain if you can claim the EITC, use the EITC Qualification Assistant. Furthermore, Earned income includes all the taxable income and wages you get from working for someone else, yourself, or from a business or farm you own.
Here Are Types of Earned Income
- Wages, pay, or tips where federal income taxes are withheld on Form W-2, box 1
- Income from employment where your employer didn’t withhold tax (such as gig economy work) including:
- Driving a car for booked rides
- Running errands or tasks
- Selling products online
- Providing creative or professional services
- Providing other temporary, on-demand, or freelance work
- Money made from self-employment, including:
- Own or run a business or farm
- Are a minister or member of a religious order
- Are a statutory employee and have income
- Benefits from a union strike
- Specific disability benefits you gained before you were the minimum retirement age
- Nontaxable Combat Pay (Form W-2, box 12 with code Q)
- If you obtain a nontaxable combat payment as earned income, it may raise or decrease the amount of your EITC. For more details, visit Publication 3, Armed Forces Tax Guide.
2023 Earned income tax credit does not contain:
- Pay you obtained for work when you were an inmate in a penal institution
- Interest and dividends
- Pensions or annuities
- Social Security
- Unemployment benefits
- Alimony
- Child support
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