In the US, there are many people who can’t afford to pay the taxes they owe. In most of these instances, the reason for that being so is that people simply don’t make enough money even with the jobs they have.
With the economy heading south over the last several years, those below the median household income have not only looked for, but have needed a way to get out of the slump that they may be in, and tax season certainly doesn’t help. The working tax credit was made exactly for those who need that sort of help when it’s available, and has become one of the most popular tax credit options today.
What is the Working Tax Credit?
The working tax credit is a credit that is received by those who make a low income. While the amount varies from state to state, and some states don’t offer this credit, this option has often been considered one that is a necessity regardless of where you’re from. You’ll need to consult your state tax laws to determine if you live in a state that offers the Working Tax Credit.
The History of Working Tax Credit
To understand the question “What is the working tax credit?” it’s important to know the history of it. In 2003 the economy began to fall back slightly in the United Kingdom. At this point, local government took matters into their own hands and created both the Working Tax Credit and the Child Tax Credit for those who are the parent or legal guardian of children.
How Do I Claim the Working Tax Credit
It’s important to remember that the Working Tax Credit is not a part of any tax bill. It is usually claimed by people who can claim themselves as independent, as well as childless couples. Additionally, dependent children can claim the Working Tax Credit.
Make sure to consult your state laws and read more about “What is the Working Tax Credit” before filing for this option, as you may not be eligible depending on your income during the last tax year.
To claim the credit, most workers must file Schedule M, with their (1040A or 1040 tax form)
Preparing your taxes does not have to be hard; TurboTax 2013 is the ideal software to use for claiming your tax credits.