January 08, 2009 // Franchising.com // (Virginia Beach, VA) In today's challenging economic climate, about 25% of eligible low and moderate income workers are overlooking the Earned Income Credit (EIC), and failing to claim money to which they are entitled. Liberty Tax encourages low income wage earners to familiarize themselves with the qualifying conditions. Because the EIC is a refundable credit, it can reduce or eliminate tax liabilities for eligible wage earners with and without children. Welfare benefits, food stamps and low income housing eligibility are not affected or forfeited if the taxpayer claims the EIC.
The adjusted gross income (AGI) limits for the earned income credit and maximum available refund amounts for 2008 are:
$38,646 for taxpayers with more than one qualifying child, ($41,646 for Married Filing Jointly): $4,824 maximum $33,995 for taxpayers with one qualifying child, ($36,995 for Married Filing Jointly):: $2,917 maximum $12,880 for taxpayers with no qualifying children, ($15,880 for Married Filing Jointly): $438 maximum amount "The IRS has extended the nontaxable combat pay election for active duty military regarding EIC for years after 2007. Active duty military who served in a combat zone this year may elect to include combat pay in earned income to figure the earned income credit, if this increases their benefit," said John Hewitt, CEO and Founder of Liberty Tax Service. "This does not make combat pay taxable."
The maximum amount of investment income for eligibility is $2,950 in 2008. To claim children for the purposes of claiming EIC, the child must be your child, stepchild, eligible foster child, adopted child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew) who has lived with you for over half the year. They must also meet the age qualification. A child of a live-in boyfriend/girlfriend is not a qualifying child for EIC.
Liberty Tax Service is the fastest growing retail tax preparation company in the industry's history, with over 3,000 offices in the United States and Canada. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 6,000,000 individual income tax returns. With 40 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX).
Liberty Tax Service (www.libertytax.com) provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax at www.esmarttax.com. Each office offers customers audit assistance, a money back guarantee, and free tax return checking. The Liberty Tax Service franchise opportunity has climbed to #3 on the latest Entrepreneur "Franchise 500."