H&R Block on the Earned Income Tax Credit
H&R Block applauds the participants of the EITC Summit for their work to improve the value, reach and efficiency of this tax benefit which is one of the nation’s largest anti-poverty programs and an important piece of annual income for millions of Americans. The group discussed ideas and suggestions for three pressing issues:
- Reducing fraud and over claims – The IRS estimated an over claim rate of 23.8 percent in fiscal year 2015, or more than $15.6 billion in improper payments.
- Increasing (proper) participation – The EITC can mean up to $6,300 a year, for those who need it the most, and the IRS estimates only 80 percent of eligible taxpayers claim it.
- Decreasing the administrative burden – Administering the EITC is difficult for taxpayers, tax professionals and the IRS due to the overall complexity of the credit and establishing and proving eligibility, given complicated working and family situations.
The ongoing collaboration of the IRS, tax industry professionals, consumer advocates, research institutes, volunteer site coordinators and other organizations is vital to ensure everyone who is eligible, but only those who are eligible, claim and receive this valuable tax benefit.
Adoptive families may also take advantage of the federal adoption tax credit which is worth up to $13,570 (for 2017) for each child they adopt.
Education tax benefits for students and their parents can save both money
20 percent of eligible taxpayers do not claim the Earned Income Tax Credit due to the misunderstanding of the requirements which can be proven costly.
New Year's Eve Baby make their parents eligible for child tax credit. The following information can help first-time parents understand the exemption.