File your taxes online with best tax filer. Our online tax service will assist you in filing your return, paying taxes online submit taxes online and provide live ..
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Best Tax Filer Tips for Low-Income Filers
1. IRA contributions
Best Tax Filer Tips for Low-Income Filers
Retirement saver's credit
Earned income tax credit
Credit for the elderly &
Disabled
2. Retirement saver's credit
A little-known provision allows certain lower-income
Taxpayers to receive credits for making retirement plan
Contributions. The amount of the credit ranges from 10
Percent to 50 percent of the first $2,000 that you put into a
Retirement plan, such as an individual retirement account
(IRA
3. Earned income Tax Credit
The earned income tax credit (EITC) is available exclusively for
lower- and middle-income taxpayers. Unlike some other
credits, the EITC is refundable, meaning you still receive it
even if it's more than you owe
For example, if you owe $200 in taxes but qualify for a $1,000
EITC, you'll actually receive $800 as a tax refund. Generally,
you need one or more qualifying children to receive the credit,
although it's possible to get the credit as an individual.
4. IRA Contributions
The IRS will allow you to take an IRA deduction
as a low-income taxpayer, even if both you and
your spouse are covered by retirement plans at
work. There are limits that can restrict the
deductibility of your contribution in certain
cases, but those limits are well above the level
of a low-income taxpayer
5. Credit For The Elderly & Disabled
As a low-income taxpayer, you may qualify for the
Credit for the elderly and disabled. In addition to
Qualifying based on income, you must meet one Of
two additional criteria -- you must either be Age 65 or
older at the end of the year, or you Must have retired
on total and permanent Disability and have taxable
disability income.
TO KNOW MORE VISIT US ON www.besttaxfiler.com
6. Credit For The Elderly & Disabled
As a low-income taxpayer, you may qualify for the
Credit for the elderly and disabled. In addition to
Qualifying based on income, you must meet one Of
two additional criteria -- you must either be Age 65 or
older at the end of the year, or you Must have retired
on total and permanent Disability and have taxable
disability income.
TO KNOW MORE VISIT US ON www.besttaxfiler.com