Jackson Hewitt(R) Reminds Taxpayers That Up to $5,751 Refundable Tax Credit Available Through the Earned Income Tax Credit

PARSIPPANY, N.J., Jan. 18, 2012 // PRNewswire // --With the 2012 tax season now underway, Jackson Hewitt Tax Service® is urging taxpayers to learn about an important tax credit and see if they qualify. The Earned Income Tax Credit (EITC) provides eligible individuals and families with low to moderate earned income with up to a $5,751 refundable credit for those who qualify. The maximum 2011 credit, which is based on income earned from wages, tips, salary and self-employment, represents a slight increase from the $5,666 maximum credit offered for the 2010 tax year.

For the 2011 tax year, the maximum credit amounts are as follows:

  • $5,751 with three or more qualifying children
  • $5,112 with two qualifying children
  • $3,094 with one qualifying child
  • $464 with no qualifying children

The EITC is a tax benefit available to millions of taxpayers, but it does have a variety of different eligibility requirements. Because of this, the credit is often overlooked, but according to Mark Steber, chief tax officer of Jackson Hewitt Tax Service Inc., taxpayers who may qualify would be well-served to spend the time learning about this important benefit. "The Earned Income Tax Credit can provide a tremendous tax break for millions of individuals and families, particularly in today's economy," said Steber. "It's also a complex credit, so consult 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:

  • $43,998 ($49,078 married filing jointly) with three or more qualifying children
  • $40,964 ($46,044 married filing jointly) with two qualifying children
  • $36,052 ($41,132 married filing jointly) with one qualifying child
  • $13,660 ($18,740 married filing jointly) with no qualifying children

Steber also cites several additional noteworthy eligibility requirements:

  • A qualifying dependent must be under the age of 19 (or under 24 if a full-time student), have the same place of residence as the taxpayer (for at least half of the tax 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. 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 between 25 years and 64 years old at the end of the tax year, has been a resident of the U.S. for more than half of the tax year and is not a dependent of another taxpayer; and,
  • For members of the military, there is an option of treating combat pay (which is non-taxable) as income when calculating the EITC – potentially increasing a tax refund.

About Jackson Hewitt Tax Service Inc.

Based in Parsippany, NJ, Jackson Hewitt Tax Service Inc. is an industry-leading provider of full service individual federal and state income tax preparation, with nearly 6,500 franchised and company-owned locations throughout the United States, including 2,800 located in Walmart stores nationwide. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.jacksonhewittonline.com. For more information, or to locate your neighborhood Jackson Hewitt® office, visit www.jacksonhewitt.com or call 1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter.

Contacts:

David G. Weselcouch
Jackson Hewitt Tax Service Inc.
(973) 630-0809
david.weselcouch@jtax.com             

Melissa Connerton
CooperKatz & Company
(917) 595-3039
mconnerton@cooperkatz.com

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Golden Corral Buffet and Grill
Golden Corral is the nation's leading family style restaurant franchise featuring steaks, buffet and bakery items.
Hungry Howie's Pizza
Hungry Howie's is currently EXPANDING! Top Markets are available for single or multiple unit development. Get the EDGE over the competition with...
Scooter's Coffee
The success of the Scooter's Coffee franchise is based upon a commitment to quality products, fast and accurate service, and always delivering...
Dental Fix
Dental Fix franchise owners repair dental handpieces (drills) and equipment on-site. We are revolutionizing the dental service industry by delivering...
Speaking Roses
Speaking Roses gives you the opportunity to produce, sell, and distribute our patented product in your area using our very own flower printer....

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)