Earned Income Credit basics for qualifying filers
The earned income credit reduces tax or yields refunds for working parents who meet conditions such as maintaining a household with a qualifying child. The credit equals 10 percent of the first 4000 earned, maxes at 400, but decreases if AGI or earned income exceeds 4000. It requires filing a return to claim the EIC and can be claimed even with no tax liability.
MENTIONED IN THIS ARTICLE
EIC
Janice
Randy
IRS
Child Care Credit Aids Taxpayers With Care Expenses
The 20 percent credit applies to qualifying child or disabled dependent care costs on 1978 tax returns. Eligible taxpayers must be employed or seeking work, incur care expenses to enable employment, avoid payments to relatives, and maintain a household with a qualifying individual. Maximum credit is $400 for one dependent and $800 for two or more. claim via Form 1040 and Form 2441. detailed guidance in IRS Publication 503.
MENTIONED IN THIS ARTICLE
IRS
Atlanta
Use Short Form 1040A Rules For Filers
This guidance explains when to use Form 1040A for tax filers. It covers income limits for wages and investments and requires no itemized deductions beyond the zero bracket. It also states income caps of 20000 for single filers and 40000 for married couples filing jointly.
1979 Tax Instructions Simplified for Easy Filing
The IRS unveils clearer 1040 and 1040A instructions with line by line formatting. A readability consultant helped simplify wording and reduce jargon, aiming to highlight first needed information and minimize page flipping.
MENTIONED IN THIS ARTICLE
Sion
IRS
New Exclusion For Home Sellers Over 55 Announced
The IRS outlines a one time exclusion allowing buyers aged 55 or older who sell a main residence after July 26 1978 to exclude up to 100000 of gain if they owned and used the home as their principal residence at least three years within five years before sale. Joint owners may both claim. Form 2119 must be filed with Form 1040. Additional guidance is in Publication 523 and 554.
MENTIONED IN THIS ARTICLE
Internal Revenue Service
Forms Distribution Center
Atlanta
Georgia
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