The rules of earned income tax credit every year. If you are eager to know whether you can take advantage of this credit scheme to check the latest of 2016 earned income tax credit table. This tax is basically made people who fall under low or moderate income lines. People can benefit this scheme in a number of ways and if you are wondering whether or not you qualify for it, here’s how you can check.
If you are self employed, you have recently lost your job, you live in a rural area, you are disabled, you pay your taxes but you do not have children, you are a grandparent looking after your grandchild or if you are divorced, you can take advantage of this scheme. The best part about this credit scheme is that it is designed for people who fall under the low or moderate income line and this makes it more beneficial for them to plan their expenses in a more efficient manner. If you are not too sure how it can benefit you, the best thing to do is to check and see how much money you can save with the credit scheme. This money can come in handy to you in various ways.
In order to apply for the earned income credit you need to understand all of the rules and regulations and the requirements of the government. One of the most important rules is understanding who can qualify or who can be claimed as your qualifying child. A qualifying child does not need to be related to both the parents. The child can be related to one of the parents and the other parent can be related to the child through marriage, law or blood. Some of the examples of a qualifying child are a step son, a step daughter, a half brother, a half sister, an adopted child and even your grandchild. Once you understand what a qualifying child is you will be able to make the most of the earned income credit. It is also important to know all the formalities and the documentation that is required while filling up the application. Missing out on a few documents or filling the wrong forms will end up delaying the approval of your earned income credit application. What you also need to realize is the rules change on a yearly basis. If you have applied for the same in 2015 it is not necessary that the same rules will apply in 2016.