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EITC = Earned Income Tax Credit - Form 886-H-EIC Toolkit
This tool helps you identify the documents needed if the IRS audits you to prove you qualify for the Earned Income Tax Credit (EITC) with a dependent child. If you're unsure whether you qualify, use the EITC Assistant or contact Holland’s Tax Service for assistance.
1) What is the Earned Income Credit (EITC)?
The Earned Income Tax Credit (EITC) is a benefit for low-to-moderate-income workers that reduces the amount of tax owed and may provide a refund. Eligibility depends on income, filing status, and the number of qualifying children. Contact Holland’s Tax Service to see if you qualify!
2) Who qualifies for the Child and Dependent Care Credit?
This credit is available to taxpayers who paid for childcare or dependent care so they could work or look for work. Eligibility depends on income, the care provider, and the age or condition of the dependent. Our tax experts can help determine if you qualify!
3) What tax changes should I be aware of?
Tax laws change frequently! Updates may impact tax rates, deductions, credits, and filing deadlines. For the latest tax updates and how they affect you, contact Holland’s Tax Service today!
4) If I claim my daughter as a dependent because she is a full-time college student, can she claim her own personal exemption when she files her return?
No, if you claim your daughter as a dependent, she cannot claim her own exemption on her tax return. However, she may still need to file if she had earned income. We can help clarify dependent tax rules!
5) Can I receive a tax refund if I am making payments under an installment agreement for a prior year’s taxes?
If you have an active IRS installment agreement, your refund may be applied to your outstanding balance instead of being issued to you. Need help managing tax debt? Let us assist you with IRS payment plans!
6) For head of household filing status, do I have to claim a child as a dependent to qualify?
Not necessarily. To qualify as Head of Household, you must have paid more than half the household costs and have a qualifying dependent who lived with you for more than half the year. We can help determine the best filing status for you!
7) What should I do if I made a mistake on my federal tax return after filing?
If you made an error on your tax return, you may need to file an amended return (Form 1040-X). Some errors, like math mistakes, may be corrected by the IRS automatically. Need assistance? We can help file amendments!
8) What is a split refund?
A split refund allows you to divide your tax refund into multiple bank accounts (checking, savings, retirement, etc.). It’s a great way to manage savings and spending. Ask us about setting up a split refund on your return!
9) How do I know if I need to file quarterly estimated tax payments?
If you’re self-employed or receive income without tax withholding (such as rental income, investments, or side jobs), you may need to make quarterly estimated tax payments to avoid IRS penalties. We can help you estimate and file your payments!
10) I retired last year and started receiving Social Security benefits. Do I have to pay taxes on them?
It depends on your total income. If Social Security is your only income, it’s usually not taxable. However, if you have additional income (pension, investments, etc.), a portion of your Social Security may be taxed. We’ll help determine your tax obligations!
Need more tax help? Contact Holland’s Tax Service at (601) 469-4660 today!
