For millions of Americans filing their 2009 tax returns, things could be vastly different this year. The recession and the high unemployment rate have affected the tax situations for many people. As such, it's important this year that you research the tax deductions or credits you now may be eligible to receive.
For example, you may have previously earned too much to qualify for the Earned Income Tax Credit (EITC), which was created to help those who work but have modest incomes. Last year, nearly 24 million people received $50 billion in EITC benefits, the IRS reports, with an average credit of more than $2,000. The EITC is one of the federal government's largest anti-poverty programs.
Unfortunately, many more people now fall into this category. If this applies to you, don't overlook the EITC, which is a refundable credit -- meaning you can get money back even if you owe no tax or the credit is more than the amount of tax owed.
"The value of the credit is larger than ever before, particularly for families with three or more children," said David Williams, chief of electronic tax administration at the IRS. "Because you were earning more, this credit may not be on your radar screen."
For example, you may have previously earned too much to qualify for the Earned Income Tax Credit (EITC), which was created to help those who work but have modest incomes. Last year, nearly 24 million people received $50 billion in EITC benefits, the IRS reports, with an average credit of more than $2,000. The EITC is one of the federal government's largest anti-poverty programs.
Unfortunately, many more people now fall into this category. If this applies to you, don't overlook the EITC, which is a refundable credit -- meaning you can get money back even if you owe no tax or the credit is more than the amount of tax owed.
"The value of the credit is larger than ever before, particularly for families with three or more children," said David Williams, chief of electronic tax administration at the IRS. "Because you were earning more, this credit may not be on your radar screen."
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