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RPC CPAs + Consultants, LLP will no longer be accepting online credit card payments after March 15, 2019.  Please call our Albuquerque office at 505-883-2727 or your local office and they will process your payment for you.

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RPC CPAs + Consultants, LLP (RPC) has merged with the nationally recognized accounting firm of Carr, Riggs & Ingram, LLC (CRI) and our offices will now operate under the name of Carr, Riggs & Ingram.  

We will continue our tradition of community support and delivering quality audit, accounting, tax, and consulting services - now with enhanced service capabilities available from a regional firm that is one of the Top 20 firms in the U.S. For more informaiton regarding CRI's 50+ office locations, more than 1,800 professionals, or industry and service specializations, visit our new firm's website at www.CRIcpa.com

Blog

Feb 21, 2014

Don’t Overlook the Earned Income Tax Credit

The following are the general requirements to claim the credit:

  1. A federal income tax return must be filed to claim the credit even if the taxpayer is not otherwise required to file.
  2. A qualifying child must live with the taxpayer in the U.S. for more than half the year. Temporary absence from home (such as to attend school) can still qualify as time spent at home.
  3. Requirements for a qualifying child:

    - The child must be under age 19 at the end of the tax year or be a full-time student under age 24 at the end of the tax year. A child who is permanently and totally disabled is a qualified child regardless of age.

    - The child will not be a qualifying child if he or she files a joint return, unless the return is filed solely to claim a refund.

    - The child must be younger than the taxpayer who is claiming the EIC. This means, for example, that a taxpayer cannot claim the credit for an older brother or sister.

  4. The credit is NOT available to individuals whose filing status is Married Filing Separately.
  5. The credit is NOT available to individuals whose “disqualified income” (i.e., investment income) is more than $3,300.
  6. The filer, spouse (if filing a joint return), and any qualifying child included in the computation must have a valid SSN issued by the Social Security Administration.
  7. The filer or spouse must have earned income. Earned income is income from working, such as wages, profits from self-employment, income from farming, and, in some cases, disability income. If a taxpayer retired on disability, benefits received under an employer’s disability retirement plan are considered earned income until the taxpayer reaches minimum retirement age.
  8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.

If you have questions related to the EITC and how it might apply to you, a friend, or a family member, please call.