• Tax Tips

    Jackson Hewitt wants you to get all the deductions and credits you’re entitled to! For that reason, we invite you to view our list of 2016 tax tips and tactics designed to help you reduce your tax burden.


  • Earned Income Credit

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    Combat Pay

    Although, combat pay is not included in income when calculating your federal income tax, you have the option of including combat pay as earned income when calculating the Earned Income Credit (EIC). You should calculate your return both ways (including and not including combat pay as earned income for EIC purposes) to determine which way gives you the more advantageous result.

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    Fraudulent or Reckless Claim

    You will not be eligible for the Earned Income Credit if the IRS has determined that you have previously claimed the credit fraudulently or recklessly. A fraudulent claim results in a 10-year loss of eligibility. A reckless claim results in a two-year loss of eligibility.

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    No Qualifying Children

    The Earned Income Credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2015, the maximum credit if you do not have any qualifying children is $503.

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    One Qualifying Child

    The Earned Income Credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2015, the maximum credit if you have one qualifying child is $3,359.

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    Three or More Qualifying Children

    The earned income credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2015, the maximum credit if you have three or more qualifying children $6,242.

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    Two Qualifying Children

    The earned income credit is a refundable credit for low-income workers with earned income. The credit is available for taxpayers with or without children. For 2015, the maximum credit if you have two qualifying children is $5,548.

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