3. Earned Income Tax Credit
According to the IRS, more than 25% of taxpayers who are eligible for the EITC, don’t claim it. They either aren’t aware that they qualify, or they find it too complicated to file for it.
The Earned Income Tax Credit is not exactly a deduction, it’s more of a refundable tax credit. It aims to help low-to-moderate income workers. However, more and more people become eligible because of the following criteria: they lost a job, took a pay cut, or, during the year, they worked fewer hours.
How much money you’re going to receive depends on your income and different filing statuses. You can’t owe any back taxes and must file your tax return on time. Also, if you haven’t filed for it in the past, even though you were eligible, you can claim it anytime during the year.
You will get money back for up to three previous tax years.
You can get up to three previous tax years.
4. Jury pay
Some companies pay their employee’s salaries in full, even when they are doing civic duty, and then they ask for the jury fees back. You probably didn’t know this, but the IRS is saying to report those fees as taxable income.
You have the right to deduct that sum, so that you won’t be taxed on money that, in the end, isn’t even yours.
