Earned Income Tax Credit Extended into 2016
Traverse City Tax Preparation Examiner Frank Ellis reveals that the Earned Income Tax Credit for low income workers has been extended into 2016.
The Earned Income Tax Credit (EITC) will be continued into 2016, according to an article by tax preparation planner Frank Ellis in a new Examiner.com article. Intended for low income workers, the credit will continue despite only 70% of those qualified having claimed the refundable tax credit last year, according to the article.
The article continues with President Obama’s thoughts on the EITC. The plan is to double the credit for taxpayers without children, the author says, increase the phase out income bracket, and allow anyone over 21 who qualifies to claim it. The credit is set to expire at the end of 2017. That could substantially increase taxes for full time minimum wage workers with two children.
Congress has to approve of the new changes. Ellis says filing the credit can add $2,000 or more to one’s pocket. A link to the Earned Income Tax Credit Table is provided to help taxpayers know what they may qualify for.
In addition, the article includes other tax credits suggested by the president. These include tax breaks for the middle class and also the $2,000 middle class paycheck credit bonus introduced by Democratic House Rep. Chris Van Hollen. Other suggestions have been to raise the top tax rate on capital gains and dividends, impose a capital gains death tax, and add a second earner working tax credit for married filers who are both employed.
Bi-partisan support in Congress is necessary for many of the proposed credits to be approved.
In claiming the EITC, the article says, filing online with H&R Block helps because it prompts answers to the correct questions. Taxpayers can know what deductions they qualify for. This helps to guarantee a larger refund. Other perks of online filing services are mentioned as well.
To learn more about the EITC in 2016 and get a link to a free refund estimator by H&R Block, go to http://www.examiner.com/article/good-news-for-the-earned-income-tax-credit-2016
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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