Tax preparers answer income tax questions regarding tax credits, deductions and how they affect your refund.
For example, how does the federal EITC increase working families' tax refund? EITC: Earned Income Tax Credit is a refundable credit, which means that if you have No Tax Liability AND you qualify for this credit, you could get the tax credit as a refund.
For 2009, that means you could get Up To An Extra: $457 if you don't have any qualifying children $3,043 if you have 1 qualifying child $5,028 if you have 2 qualifying children, or $5,657 if you have 3 or more qualifying children CTC:Child Tax Credit has also been modified.
For 2009, taxpayers who desire to take advantage of this credit must be claiming the qualifying child as a Dependent.
The qualifying child must also meet the new UDC age requirements.
UDC:Uniform Definition of a Child As passed by Congress to end some of the unintended consequences and "loopholes" of the original law related to child tax benefits: Age requirement change: Qualifications: Child must be YOUNGER THAN claiming taxpayer Child must be Under 19 years of age or under 24 years AND a student Note: This new requirement DOES NOT APPLY to a qualifying child who is totally and permanently disabled.
New tie-breaker rule: If child is NOT being claimed by a Parent taxpayer, child may qualify as qualifying child for another taxpayer with Higher AGI: Example - an older sibling Note:Non-parent taxpayer may claim ONLY IF AGI is Higher than parent taxpayer's AGI AND parent taxpayer does not claim child.