Make the Most of Tax Credits: A Comprehensive Guide

💰The Earned Income Tax Credit can wipe out or greatly reduce your tax liability and even generate a refund.

🧑‍🤝‍🧑The credit is designed to benefit low-income individuals and families, especially single mothers and single filers.

👶The definition of a qualifying child includes biological, adopted, foster, and stepchildren, as well as grandchildren.

💻Technology and the internet have made tax filing more accessible, with low-cost professional tax preparers and free tax filing options available.

📅If you miss the tax filing deadline, you can always file an amended tax return to claim any missed credits and deductions.

How much can I get from the Earned Income Tax Credit?

—The credit can be worth anywhere between $607 and $7,400, depending on your filing status and number of qualifying children.

Who qualifies for the Earned Income Tax Credit?

—To qualify, you must meet certain income and age requirements, have earned income, and meet the definition of a qualifying child.

Can I do my taxes myself if I don't have a lot of money?

—Yes, you can use low-cost professional tax preparers or file your taxes for free using online software or assistance programs.

What is the deadline for filing an amended tax return?

—The deadline for filing an amended tax return is typically three years from the original deadline or two years from the date you paid the tax, whichever is later.

What if I missed the tax filing deadline?

—If you missed the tax filing deadline, you can still file your tax return and claim any eligible credits and deductions. It's important to file as soon as possible to avoid penalties and interest.

00:09Today's Money Matters focuses on tax time and how to make the most of tax credits and deductions.

00:39The discussion centers around the Earned Income Tax Credit, which can wipe out or greatly reduce your tax liability and even generate a refund.

01:20The credit is designed to benefit low-income individuals and families, especially single mothers and single filers.

02:23Qualifying for the Earned Income Tax Credit depends on various factors such as income, filing status, and the definition of a qualifying child.

03:30Technology and the internet have made tax filing more accessible, with low-cost professional tax preparers and free tax filing options available.

05:53Even if you missed the tax filing deadline, you can still file an amended tax return to claim any missed credits and deductions.