07 Apr Working Grandparents May Be Eligible for EITC
Working Grandparents May Be Eligible for EITC
The Internal Revenue Service wants working grandparents raising grandchildren to be aware of the Earned Income Tax Credit (EITC) and correctly claim it if they qualify. And Palm Beach Tax Service wants working grandparents to know, too.
The EITC is a federal income tax credit for workers who don’t earn a high income ($53,505 or less for 2016) and meet certain eligibility requirements. Because it’s a refundable credit, those who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund. The EITC could put an extra $2 or up to $6,269 into a taxpayer’s pocket.
Grandparents and other relatives care for millions of children, but are often not aware that they could claim the children under their care for the EITC. A grandparent who is working and has a grandchild who is a qualifying child living with him or her may qualify for the EITC, even if the grandparent is 65 years of age or older. Generally, to be a qualified child for EITC purposes, the grandchild must meet the dependency requirements.
Special rules and restrictions apply if the child’s parents or other family members also qualify for the EITC. There are also special rules for individuals receiving disability benefits and members of the military.
Working grandparents are encouraged to find out, not guess, if they qualify for this very important credit. To qualify for EITC, the taxpayer must have earned income either from a job or from self-employment and meet basic rules. Also, certain disability payments may qualify as earned income for EITC purposes. EITC eligibility also depends on family size. Eligible taxpayers must file a tax return, even if they do not owe any tax or are not required to file. Among the IRS’s recommendations – qualified taxpayers should consider claiming the EITC by filing electronically through a qualified tax professional.
Palm Beach Tax Service offers the services in Lantana, Florida. We’re a locally-owned and operated company. We understand that families – and their taxes – can be complicated. If yours needs help with taxes or other accounting challenges, we hope you’ll call on us. To discuss the various services and accounting packages we offer, please contact us at (561) 586 0029 or firstname.lastname@example.org.