Lower Income? The 2021 Earned Income Tax Credit Can Boost Your Benefits
Qualifying for the earned income credit on your tax return is like hitting the jackpot in the world of tax credits. It's the hottest credit around for low- and moderate-income individuals and can immediately put more money in your pocket. If you feel left out of the tax benefits that the wealthiest individuals receive, the 2021 increase in earned income limits and credits is your chance to cash in on the tax code.
Every taxpayer's goal is to get more tax credits and deductions during tax time to reduce the amount of taxes owed. Tax credits are the most in-demand option, providing a dollar-for-dollar reduction of the income tax owed to the federal and state governments. For example, if your tax bill is $5,000 and you receive a $4,000 earned income tax credit (EITC), your tax bill is automatically reduced to $1,000.
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Source Fool.com
