An estimated 15% of Americans, or 45 million people, will file their income taxes in the last weeks of April. But just because you are waiting until the last minute doesn't mean you have to miss out on some very worthwhile tax credits.
Make Work Pay Credit
This one-time tax credit for the 2009 and 2010 filing seasons allows individuals to receive an automatic $400 tax credit if earning $75,000 or less in adjusted gross income. The credit is $800 for married filers, and $250 for Social Security recipients, retired railroad workers and disabled veterans. The amount lessens if you are a government retiree receiving other income credits or make over the $75,000 threshold.
Earned Income Credit
The Earned Income Tax Credit, or EIC, was enacted in 1975 to offset the cost of social security taxes and provide a work incentive for low to moderate-income households. One of the biggest misconceptions about this credit is that you need to have children to receive it. Not necessarily. Here is a quick breakdown of qualification based on income:
