 |
|
|
WICD - Search Results
The following is an archived video story. The text content of that video story is available below
for reference. The original video has been deleted and is no longer available.
Earned Income Tax Credit Increased
Gov. Pat Quinn started his Friday by urging Illinois citizens to take advantage of the Illinois Earned Income Tax Credit.
"Now's the time, let's get going," Quinn said. "We don't want to leave any money on the table, whether it's coming from Washington or Springfield. We want to make sure that money gets into the pockets of everyday families."
A big part of his push is the fact that he signed legislation increasing the amount last year.
"Last year, your earned income credit was 5 percent of your federal," Liberty Tax General Manager Nicole Renfro said. "This year, for filing year 2012, it will be 7.5 percent, and then in 2013 it will be 10 percent. So it's doubled. As well as on the state side, your exemption amount has gone up $50."
But not everyone qualifies for this tax credit.
"One of the big things you want to remember is it's based off your earned wages," Renfro said. "So things like unemployment, Social Security, are not going to qualify you for earned income credit."
The amount increases and decreases like a bell curve based on income, but that's not the only factor.
"Every dependent you add to your return makes a big difference as far as your earned income credit will be," Renfro said. "So every person's situation is completely unique when it comes to earned income credit."
That's not the only income-based credits and breaks that taxpayers need to keep in mind.
"You want to make sure that if you have any job expenses that you weren't reimbursed for, you have all that in mind," Renfro said. "That your business expenses, if you're self employed, you have that and all your receipts. The IRS is asking that people keep better records. They're asking for more records of things this year. We want to make sure that everything is in line, before you go in to file your taxes."
Earned Income Tax Credit Increased
Gov. Pat Quinn started his Friday by urging Illinois citizens to take advantage of the Illinois Earned Income Tax Credit.
"Now's the time, let's get going," Quinn said. "We don't want to leave any money on the table, whether it's coming from Washington or Springfield. We want to make sure that money gets into the pockets of everyday families."
A big part of his push is the fact that he signed legislation increasing the amount last year.
"Last year, your earned income credit was 5 percent of your federal," Liberty Tax General Manager Nicole Renfro said. "This year, for filing year 2012, it will be 7.5 percent, and then in 2013 it will be 10 percent. So it's doubled. As well as on the state side, your exemption amount has gone up $50."
But not everyone qualifies for this tax credit.
"One of the big things you want to remember is it's based off your earned wages," Renfro said. "So things like unemployment, Social Security, are not going to qualify you for earned income credit."
The amount increases and decreases like a bell curve based on income, but that's not the only factor.
"Every dependent you add to your return makes a big difference as far as your earned income credit will be," Renfro said. "So every person's situation is completely unique when it comes to earned income credit."
That's not the only income-based credits and breaks that taxpayers need to keep in mind.
"You want to make sure that if you have any job expenses that you weren't reimbursed for, you have all that in mind," Renfro said. "That your business expenses, if you're self employed, you have that and all your receipts. The IRS is asking that people keep better records. They're asking for more records of things this year. We want to make sure that everything is in line, before you go in to file your taxes."
