PARSIPPANY, N.J., Feb. 4, 2011 /PRNewswire/ -- For eligible individuals and families with low to moderate earned income resulting from wages, tips, salary and self-employment, the Earned Income Tax Credit (EITC) can mean up to a $5,666 refundable credit due to an increase for the 2010 tax year.
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For the 2010 tax year, the maximum credit amounts are as follows:
- $5,666 with three or more qualifying children
- $5,036 with two qualifying children
- $3,050 with one qualifying child
- $457 with no qualifying children
Jackson Hewitt Tax Service® encourages consumers to explore their EITC eligibility, as it is one of the most common tax credits, though it does have a variety of different provisions and eligibility requirements. "The EITC offers a potentially tremendous tax break for many individuals and families, particularly in today's economy," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "It could provide a substantial boost to millions of taxpayers, but because the eligibility rules are complex, it's important to speak with a knowledgeable tax preparer to see if you qualify."
To claim the EITC, taxpayers must meet certain income thresholds. Eligible taxpayers must have total earned income and adjusted gross income less than the following amounts:
- $43,352 ($48,362 married filing jointly) with three or more qualifying children
- $40,363 ($45,373 married filing jointly) with two qualifying children
- $35,535 ($40,545 married filing jointly) with one qualifying child
- $13,460 ($18,470 married filing jointly) with no qualifying children
In addition, Steber cited several other eligibility requirements to note:
- A qualifying dependent must be under the age of 19, have the same place of residence as the taxpayer (for at least half of the year) and be related to the taxpayer as a child, stepchild, foster child or descendant of these.
- Grandparents, aunts, uncles and older siblings may claim a child as their qualifying child, provided they shared a residence with the child for more than six months of the tax year and the child's parents are unable to claim the child. However, the same child cannot be claimed by more than one taxpayer for EITC purposes.
- A taxpayer with no qualifying child may claim the credit if he or she is at least 25 years old, but under 65 at the end of the year, and is a resident of the U.S. for more than half the year.
- For members of the military, there is an option of treating combat pay (which is non-taxable) as income for purposes of calculating the Earned Income Tax Credit – and thereby potentially increasing a tax refund.
About Jackson Hewitt Tax Service Inc.
Based in Parsippany, N.J., Jackson Hewitt Tax Service Inc. (NYSE: JTX) is an industry leading provider of full service individual federal and state income tax preparation, with franchised and company-owned office locations throughout the United States. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.jacksonhewittonline.com. For more information, or to locate the Jackson Hewitt® office nearest to you, visit www.jacksonhewitt.com or call 1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter.
SOURCE Jackson Hewitt Tax Service Inc.