Millions of families suffered financially this year, and the IRS is using the EITC as a way to help Americans rebound.
The EITC stands for the Earned Income Tax Credit.
This tax credit helps low to moderate income families receive a tax break while working.
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Those who qualify may use this tax credit to cover owed taxes to the IRS, or to receive a larger refund from the IRS.
This year the EITC has been helpful because qualifications and dollar amounts changed to work out in favor of Americans.
The American Recovery Act under the Biden Administration enforced assistance for families but many measures are set to expire.
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The EITC has faced numerous issues regarding eligibility and claiming dependents.
Can parents claiming the EITC through the IRS claim the same child?
A taxpayer that pays for more than half of the household expenses can file as the head of household.
If parents pay for expenses equally, neither can claim head of household.
When it comes to tax credits and EITC, if the child qualifies under both parents, one can claim the child, not both.
If the child ends up being claimed by both, the IRS will ultimately decide who gets to claim them with a tiebreaker rule.
The rule is if a who lives with each parent for an equal amount of time throughout the year, the one with the higher AGI will claim the child.
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