The earned income credit is a great choice that you can make to save some money during tax time. But not every tax payer is going to be able to qualify for this deduction when they file their tax return. In most cases, you will need to be married and filing together to get this deduction and have a few other income requirements to get this deduction. Most of the time, working with an online software or with a tax professional will ensure that only the people who are supposed to get this credit are the ones who receive it.
At times, there are individuals who try to claim this credit when they are not qualified for it. This can lead to a red flag with the IRS and could get the individual into a lot of trouble. If you claimed the Earned Income Credit when you were not allowed to do so, make sure to contact the professionals at 1-2-3 Financial Services to help you out right away. They will be able to help you correct your tax return so you can get out of trouble and back on track in no time.
The Earned Income Credit
The earned income credit is a credit that some individuals are able to qualify for when they pay their taxes at the end of the year. Not every individual who pays taxes will be able to get this credit so it is important that you are careful when going through your taxes. Using a tax professional will help you to figure out whether you get this deduction or not, but trying to get it all on your own can be a challenge.
In most cases, this credit is meant to help families under a certain income threshold with some of their tax bill. It is not often that single people without children will be able to get this credit, but you should talk to your tax advisor to ensure whether or not you are able to get this credit. The professionals at 1-2-3 Financial Services are happy to take a look at your tax return and your unique situation in order to figure out which credits and deductions are going to work for you and if you qualify for the earned income credit based on your status.
Improper Claiming
There are rules that govern who is allowed to claim this kind of credit on their tax return. If you meet these requirements, you are fine claiming the full amount of this credit. But if you are not able to meet one or more of the requirements and you still go ahead of make the claims, the IRS is not going to be happy. They are going to assume that you are trying to cheat the system and will punish you as much as possible.
In most cases, if you are caught claiming this credit when you do not deserve it, you will have to pay back all the taxes that you saved from this credit along with all the interest and penalties that have accrued in the time since you filed that tax return. In addition, you are going to lose your ability to use this credit in the future, even if you qualify for the credit later on. This could change the way that you file your taxes for quite some time so be careful about claiming this improperly.
Using a tax software program or a professional tax preparer can help you to avoid mistakes in your tax filing. Most of these will be able to ask you a few questions about your tax filing status to determine if you qualify for this deduction. If you try to do the work on your own, it is more likely that you will make a mistake that could cost you. Instead of worrying about these mistakes, make sure to trust the professionals at 1-2-3 Financial Services to help you with your tax return so you can get all the deductions that you deserve without causing any extra ire with the IRS>
Getting Someone on Your Side
If an honest mistake was made when it comes to claiming this credit, it may be a good idea to get a professional on your side. The IRS is going to assume you purposely did this claiming and you could be in a lot of trouble. While inability to use this credit now may not seem like a big deal, if you need to claim it later, it could cause some problems. Instead of letting the IRS take away your ability to claim this credit, make sure to contact the professionals at 1-2-3 Financial Services. They can help you to take care of all your IRS issues and will get you back on track in no time.
Filing taxes can be hard. Often people will claim a credit because they don’t understand how it works or if they should be claiming it or not. Rather than leaving all of this to chance, make sure to get a tax professional on your side to get the tax return done correctly. Louis Vestano with 1-2-3 Financial Service sin Warwick, RI can help you to file that tax return correctly so you don’t run into any problems. Contact our professionals today so you can get the most deductions without having to claim any you aren’t supposed to.
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