Changes to the EIC
COULD AFFECT YOUR TAX REFUND This tax year, there are some changes being made to this valuable tax credit and we thought you should know about it.
CLAIM THE EIC Even if you file your form 1040 early, the IRS has stated that they will be holding all tax returns claiming the EIC until February 15th. This delay is to make sure that EIC fraud and the tax gap is decreased.
VALID SOCIAL SECURITY NUMBER
One of the qualifications of claiming the EIC is having a valid social security number. However, in prior years, you could claim it if you obtained a valid social security number by amending previous returns.
FRAUDULENTLY CLAIM THE EIC The tax penalties have made fraudulently claiming the EIC very unattractive. However, now the EIC falls under the “accuracy penalty”/ “negligence penalty”. Furthermore, the underpayment penalty can be applied to the amount of taxes that you owe when the EIC is removed from your return.
FINAL WORD
Despite all the changes this tax year, these changes are put in place to benefit taxpayers. To stay in the loop about new tax laws and changes make sure you check with TurboTax 2017 from time to time.
The Earned Income Credit (EIC) is the party starter. It is loved by taxpayers because if you qualify it could get you more than $6000. The best part is since its refundable, you can get the unused portion in the form of a tax refund. WWW.COUPONCODESFOR2015.WORDPRESS.COM/2016/11/08/CHANGES-TO-THE-EIC-THAT-COULDAFFECT-YOUR-2017-TAX-REFUND