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Tax Credit Consulting: Earned Income Horn Lake MS

The Earned Income Tax Credit was first enacted into law in 1975. The Earned Income Tax Credit (EITC), or as it is sometimes called The Earned Income Credit (EIC) was designed as a tool to encourage low income workers to continue to work rather than lose hope and depend entirely on welfare. When the credit exceeded the amount of taxes owed it could result in a considerable refund.

H&R Block Inside Lynchburg Collection
(662) 781-3715
5842 GOODMAN RD
HORN LAKE, MS

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Solution Services
(901) 345-2550
7915 Highway 51 N
Southaven, MS

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H&R Block
(901) 346-8320
1200 SOUTHLAND MALL
MEMPHIS, TN

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H&R Block
(901) 366-2001
6120 HICKORY RIDGE MALL
MEMPHIS, TN

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Mobile Tax Svc
(901) 458-0956
809 S Highland St
Memphis, TN

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Liberty Tax Service
(866) 871-1040
3048 Goodman Rd W
Horn Lake, MS

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301 Tax Svc
(662) 342-7676
1200 Main St
Southaven, MS

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H&R Block
(901) 368-5228
4672 KNIGHT ARNOLD rd
MEMPHIS, TN

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3T Solutions
(901) 774-6351
902 Polk Ave.
Memphis, TN
 
Joe L Stout Income Tax Svc
(901) 744-7985
1493 Catherine St
Memphis, TN

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Tax Credit Consulting: Earned Income

Earned Income Tax Credit

The Earned Income Tax Credit is one of the major poverty fighting tools of the United States Government. It is designed to help low income families and encourage them to work rather than depend solely on welfare.

The Earned Income Tax Credit was first enacted into law in 1975. The Earned Income Tax Credit (EITC), or as it is sometimes called The Earned Income Credit (EIC) was designed as a tool to encourage low income workers to continue to work rather than lose hope and depend entirely on welfare. When the credit exceeded the amount of taxes owed it could result in a considerable refund. In 2004, over 21 million taxpayers received around 36 billion dollars in refunds because of the Earned Income Tax Credit.

In order to be eligible, the tax payer and his spouse, if filing jointly, and any children claimed as dependents must have a valid social security number. They also must file a tax return, of course, even if the amount of income earned does not obligate them to do so. Earned Income is defined as income that is actually earned through work. It does not include investment earnings or payments received for anything else except actual work.

The Earned Income Tax Credit also has no impact on the eligibility for certain other welfare benefits such as Supplemental Social Security, Food Stamps, or other types of assistance. The credit was responsible for raising the income levels of almost 5 million,  of the 21 million taxpayers who claimed it in 2004,  over the poverty level. Yet, it is estimated that millions of eligible low income tax payers do not claim it despite the efforts of the Government and tax preparations professionals to encourage its use.

The Earned Income Tax Credit receives much bipartisan support in Congress as an effective tool for poverty control. It is argued that a small raise in the percentages of the credits could have a much more positive impact on the plight of low income workers than a major rai...

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