Recent changes to the Earned Income Credit have created new earning opportunities for tax professionals.
The Earned Income Tax Credit is one of the government’s most potent tools that fight poverty and encourage people to work as well. Essentially the program dolls out cash to low-income employees to supplement their wages and boos their quality of living. It is issued at the end of the year in the form of a tax credit. The credit can add up to as much as $6,000 a year to families with three plus children. Another peripheral effect of the implementation of the EIC is that it offsets rising Social Security taxes and the erosion of minimum wage from inflation in previous years. The EIC is a vital adjuvant to the overall tax benefits program. Let’s take a look at the EIC and it’s pros and cons.