Earned income credit or earned income tax credit is a tax credit for those people living under poverty although they are working and earning a living but comes under the earning bracket of low to moderate earned income credit 2016 chart bracket.
The federal tax credit assist these people living under low and moderate income bracket by refunding or crediting them with money, this tax credit has helped millions of Americans out of poverty and increased their quality of life, according to the IRS department millions of people have applied for earned income credit tax and have helped them out of the rough patch they were in, but millions more who are actually eligible for this tax assistance have not applied for it, which ultimately could have helped them out of poverty and distress.
Anyone who has an annual investment amount to or below the amount stipulated by their state as low or moderate income investment can and are eligible to apply for earned income tax credit or earned income credit. They can apply jointly with the spouse or under the head of the family, earned income tax credit helps poor families, families that have large family members to help ease their financial situation.
To be eligible the applicant should have a social security number, must specify their marital status, the total number of eligible children in the family, if single the individual can apply under zero eligible child, the amount of tax credit varies according to the applicant status, if married the applicant gets more assistance financially as compared to a single applicant, also the number of eligible children also affects the final amount of financial tax credit the applicant receives.
The earned income tax credit has helped families stay afloat and get themselves out of poverty with the assistance of the government, the eligibility criteria may vary from state to state although the overall basic requirement remains the same as stipulated by the federal government.