Workers and families earning a low income can find relief during tax season by filing an Earned Income Tax Credit (EITC) with their 1040. Trustway Accounting, a firm specializing in tax preparation, accounting, and payroll, has expanded its tax preparation services and released the new guide to help clients file their EITC so they can reduce owed taxes or increase their tax refunds.
For more details, please visit https://trustwayaccounting.com/blog/b/earned-income-tax-credit
The new guide outlines the EITC program, discussing eligibility criteria, filing information, expected credits, joint filing, federal and state EITC, and timelines.
An incorrectly filed EITC is the most common red flag that triggers auditing, explains Trustway Accounting. An incorrectly filled EITC form can result in a fine of $500, a penalty low-income households cannot afford.
Trustway Accounting prepares federal and state income tax returns and personalized tax reduction reports, giving clients tax filing strategies based on income, expenses, individual needs, and financial goals. In addition, the EITC guide discusses the Schedule EIC that needs to be filed along with a standard tax return.
Qualification for EITC depends on income, marital status, the number of children in a household, and whether a client resides in a qualifying state. These factors also determine the size of the tax credit.
Form 1040 (Individual Income Tax Return) or Form 1040 SR (Tax Return for Seniors) must be filed to claim the EITC. If a client has one or more children, a Schedule EIC must accompany the 1040.
The guide lists qualifications stipulated by the IRS, some of which include a valid social security number, US residency status, rules concerning separation from a spouse, Form 2555 (Foreign Earned Income) status, and maximum investment income.
With over 25 years of experience providing tax services, Trustway Accounting can personalize tax returns for each client, accounting for the intricacies of each tax credit and keeping up-to-date with any changing tax laws.
With the latest announcement, Trustway Accounting makes the arduous, complicated tax filing process easier for households earning a low income.
A satisfied client said: “Trustway Accounting has helped answer all my questions about the earned tax credit and getting the most returns from my self-employment taxes.”
Interested parties can find more information by visiting https://trustwayaccounting.com
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Insta Daily News journalist was involved in the writing and production of this article.