Deliverable Length: 10-12 slides with speaker notes and references
Details: The local college has requested that someone from your company attend a workshop for college students to discuss income tax deductions.
Instructor Comments: Earned Income Credit
The federal government uses the earned-income tax credit program to provide extra income to people earning less than $39,783 per year by reducing the amount of taxes they have to pay.
Most people who fail to apply for the earned-income tax credit do so from lack of knowledge about it. Schedule EIC goes with form 1040.
The earned-income tax credit was enacted in 1975 as a federal anti-poverty tool and expanded in subsequent tax bills. The maximum refundable credit is $4,700, depending on income and the number of dependents a working person carries, Bryant said.
It's an incentive for people to work.
For people whose income falls within the eligibility range for the EITC, it is one of the largest tax credits available-a refundable credit.
With certain restrictions, such as investment income of more than $2,900 or foreign income credit, people who itemize their tax returns may also qualify for the EITC
Using children as a calculation factor, that the number of children, their ages, the parent's relationship to them and the children's residence are all factors that determine whether an earned-income tax credit is due and how much it will be. A different set of applies to young, single, childless taxpayers© BrainMass Inc. brainmass.com June 3, 2020, 9:32 pm ad1c9bdddf
This posting discusses four important US Income Tax deductions. It also discusses the reasons why these deductions are given.