Tax Extender: Earned Income Tax Credit (EITC)

Background: The EITC for three or children, with 45% credit rate and maximum credit of $6,269 was a temporary increase sun setting after 2017 (Sec 32(b)(3).

Under the legislation (Act Sec 103):

  • The three of more children rates have been made permanent.
  • Adds program integrity provisions, which prohibits an individual from retroactively claiming the AOTC by amending a return, or filing an original return if he failed to file, for any prior year in which the individual or a student for whom the credit is claimed did not have an ITIN (Act Sec 206).
  • Reduces the marriage penalty, by increasing the income phase-out by $5,000 (was $3,000) for those filing jointly.
December 23, 2015 by Lee Reams Sr.
previous / next

Leave a comment

Please note: comments must be approved before they are published.