Finance

Missing Out On EITC Can Cost You Dearly

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Earned income tax credit is an amazing credit that you can benefit from. Most states in United States are eligible for this tax credit, however if you are not too sure whether or not your state is eligible for this tax credit all you need to do is go online and check for the status. While there are a number of rules that apply to earned income tax credit, it keeps getting modified and changes year after year. This is why it is really important for you to stay updated with the 2016 EITC rules so you know what to expect from the tax credit. Any person who earns below $50,000 in a year is usually eligible for this tax credit. People who have recently lost their job, got divorced or work as freelancers too can avail on this tax credit.pay-income-tax-online-02While you may qualify for earned income tax credit it is not necessary that the dependents listed in your application form qualify as well. The main listings in your application form are usually the qualifying children. These qualifying children that you list play a huge part in the amount that gets approved as your earned income tax credit. state-income-tax-1The qualifying child does not need to be related to both the parents. Either of the parents can be related to the child through marriage, law or blood. It is also important to know who you can list as your qualifying child in your application form. You can list your step sister, your step brother, your grand child, your adopted child and even your niece and nephew as the qualifying children in your application form. Once you fill the application form correctly there are chances of your application getting approved quicker than normal.

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