Can I get the earned income credit?
You may be able to take this credit if a child didn't live with you
and you earned less than $10,330. You may also be able to take this credit
if a child lived with you and you earned less than $26,473 (with one qualifying
child). Other rules apply. For details, refer to Tax
Topic 601, Earned Income Credit (EIC), or Publication
596, Earned Income Credit.
Can I claim the child and dependent care credit?
If you paid someone to care for your dependent under age 13 or your
disabled dependent or spouse so that you could work or look for work, you
may be able claim the credit for child and dependent care expenses. For
specific information on how to qualify for this credit refer to Tax
Topic 602, Child and Dependent Care Credit, or Publication
503, Child and Dependent Care Expenses.
Can I get the credit for the elderly or the
Generally, if you were age 65 or older or disabled and your income
and nontaxable social security or other nontaxable pension are below specified
amounts, you may be able to take this credit. For more details, refer to
Tax Topic 603, Credit for the Elderly or the
Disabled, or Publication 524,
Credit for the Elderly or the Disabled.
What are advance earned income credit payments?
If you expect to qualify for the earned income credit in 1999, you
may be able to start getting part of the credit with your pay now, instead
of waiting until you file your 1999 tax return in 2000. This is called
the advance earned income credit or AEIC.
To get part of the credit with your pay, you must have at least one
qualifying child, and meet certain other conditions. You cannot get the
AEIC if you do not have a qualifying child, even if you will be eligible
to claim the earned income credit on your 1999 return. To see if you qualify,
refer to Form W-5, Earned
Income Credit Advance Payment Certificate, or Publication
596, Earned Income Credit. Additional information on the advance
earned income credit is also available in Tax Topic
I heard there is a credit for hiring certain
groups of workers, such as veterans or ex-felons. Is that the same thing
as the Work Opportunity Tax Credit?
The work opportunity credit provides an incentive to hire individuals
from targeted groups that have a particularly high unemployment rate or
other special employment needs. The credit can be as much as 40% of the
qualified wages you pay to individuals who begin work for you between October
1, 1996, and June 30, 1998. The credit can be claimed by filing Form
5884, Work Opportunity Credit.
An individual is a member of a targeted group if he or she is a:
- Qualified recipient of Aid to Families with Dependent Children (AFDC)
or successor program.
- Qualified veteran.
- Qualified ex-felon.
- High-risk youth.
- Vocational rehabilitation referral.
- Qualified summer youth employee.
- Qualified food stamp recipient.
- Qualified SSI recipient.
An individual is not considered a member of a targeted group unless
your state employment security agency certifies him or her as a member.
This certification requirement can be satisfied in either of two ways:
- On or before the day on which the individual begins work for you,
you have received a certification from your state employment security agency
that the individual is a member of a targeted group, or
- On or before the day you offer employment to an individual, you
complete Form 8850, Work
Opportunity Credit Pre-Screening Notice and Certification Request,
and send it to your state employment security agency no later than the
21st day after the individual begins work. You must receive the certification
before claiming the credit.
See Tax Topic 750, Employer Tax Information
for other employer information, and Tax Info
for Business, on this site for other employer information.
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