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Tax Attorneys in Los Angeles Provide Advice to Taxpayers

Thursday, March 5, 2015
We are the Strategic Tax Lawyers and as tax attorneys in Los Angeles we are specialists in tax law and the tax code. We want to let you know more about the legal aspects of the Earned Income Tax Credit (EITC) since there can be some confusion about it.  Lately, we have written about taxpayers falsely claiming elevated incomes in order to qualify for tax credits.  Tax credits are meant for taxpayers who earn low or moderate income by providing them a tax break each year. Eighty percent of taxpayers will claim an Earned Income Tax Credit, but we encourage all income earners who are eligible to claim this valuable credit.  We would like to share the following tips about EITC:

• First, you should review your eligibility for the tax credit if you earned less than $52,427.  Also, in case your financial situation is different than previous years, it would be a good idea to review the EITC eligibility rules.  You could qualify for the tax credit now but not in previous years.  If you do qualify, then you need to claim the credit when you file your income taxes.   The best advice we can give you is to use the EITC assistant tool on the Internal Revenue Service website in order to determine you EITC eligibility.  Don’t just assume one way or another.  This credit is too valuable to just rule out. The IRS tool can assist you with determining your qualifications for EITC as well as the amount you would qualify for.

• Get familiar with the rules of EITC. If you are going to claim the tax credit, you should understand what you are applying for to make sure you will qualify.   Some important factors include (1) you can’t file Married Filing Separately; (2) you need a valid Social Security number for yourself and your spouse (if you are married) as well as any children you claim: (3) you need to have earned income from being self-employed or from an employer; (4) you could be married or single to qualify; (5) members of the U.S. Armed Forces have special rules that apply.

• In general, the EITC can reduces the amount of tax you owe resulting in a tax refund which could be worth up to $6,143.  Last year, the credit averaged to $2,400.

• If you prepare your own taxes, use free services and free software to file your tax return and tax claims.

Are you concerned about the legal matters associated with the Earned Income Tax Credit?  Are you looking to hire taxation attorneys in Los Angeles?  Consider contacting the Strategic Tax Lawyers, LLP who have years of tax-related experience and successful outcomes.  For a free consultation to assist you with your tax-related issues contact the Strategic Tax Lawyers at (800) 669-4775.