With the tax filing season quickly approaching, the Internal Revenue Service recommends taxpayers take time now to determine if they are eligible for important tax credits.
“Tax credits give you a dollar-for-dollar amount back on your taxes,” said Michael Devine with the Internal Revenue Service. “Some of them will give you back the amount you paid in, others will give you back more than what you paid in taxes.”
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements.
“Last year, almost 200,000 taxpayers in Kansas got $458 million in EITC credits,” said Devine. “This goes a long way to help families with small children or even the elderly parents they are taking care of.”
There are as many different tax situations as there are taxpayers, so becoming familiar with the Service’s website is a good move.
“Just go to irs.gov,” said Devine. “Right at the top of our webpage, there’s a little click that you can go to credits and deductions that will explain things and list all of them, not only for individuals, but also for businesses.”
It’s also important for taxpayers to do a paycheck checkup to be sure the right amount of money is being withheld from their paycheck to reduce the amount that would need to be paid after filing. Information on that is also available at irs.gov.