Many qualified taxpayers overlook the Earned Income Tax Credit (EITC), potentially missing out on thousands of dollars at tax time.
Tax credits mystify many Americans, if only because its hard to know which ones they qualify for and why. They're worth having because they provide meaningful savings on a filers overall tax contribution and in some cases lead to a tax refund.
One of the most beneficial credits for families with low or moderate incomes is the Earned Income Tax Credit (EITC). It was established to offset the burden of Social Security taxes and provide an incentive to work. Experts of financial planning and taxes recommend all filers explore their eligibility for receiving the EITC.
It is an overlooked credit all too often and if youre not earning a whole lot of money but are working, you can end up getting back more money than you pay in.