Earned Income Tax Credit

"The Impact Of The Earned Income Tax Credit On Poverty: Analyzing The Dimensions By Race And Immigration", written by Olugbenga Ajilore, studies if the earned income tax credit can help immigrants and minorities overcome poverty. Ajilore studied the effects of the direct injection of money into the pocketbooks of poor immigrants and African-Americans. The goal was to discover if the earned income tax credit gave a need boost to people for upward movement to new income levels. One thing

families with higher incomes. Children that live beneath the poverty line are more likely to have learning disabilities, developmental delays, and behavioral problems. These are just a few disadvantages of the hundreds that children living in poverty deal with on a day to day basis. There are ways to help these children in poverty, that is the extension of the American Recovery and Reinvestment Act (ARRA) of 2009 improvements to the Child Tax Credit and the Earned Income Tax Credit. The extension of

though the Earned Income Tax Credit encourages work for some groups, it actually discourages work for others; such as families with two earners who can decrease hours worked and still have the same amount of money due to the amount of credit. It is becoming a challenge for low-to-middle income families to benefit from the policy and even harder to gain upward social/economic mobility. According to Eamon (2009), “Although we might expect that over time the EITC would motivate more low-income parents

the best way to encourage the world of work is to open the window of opportunity and reward. This was the mindset of the government when they establish Earned Income Tax Credit (EITC). This program was established to reward low and moderate income workers through the tax system to continue to encourage work. The central idea of Earned Income Tax Credit is a work-oriented program that provides a

Foreign Tax Credit for Individuals: The Foreign Tax Credit is designed to be very simple in nature, as it only requires basic math skills to compute the tax liability with the credit. As mentioned above, income that is earned in a foreign location may be taxed by the respective government of that location. Therefore, because the United States utilizes a global tax system, the individual or entity may be taxed by the foreign government and definitely taxed by the United States government. Therefore

07 Individual Income Tax Computation and Tax Credits   True / False Questions   1. Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status.    True    False   2. The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income.    True    False

The income earned by the U.S. individuals and corporations in the foreign countries or foreign source are taxed by the U.S. government, even though other countries also tax any income earned within their borders. To offset this double taxation of income by two different countries, the U.S. grants both individuals and corporations a foreign tax credit (FTC) that can be used to offset income taxes assessed by a foreign country on the income earned there (Foreign Tax Credit, FTC, n.d.). The FTC is allowable

Tax consequences of current operations and alternative options for expanding abroad In terms of the tax consequences that Hall Oakes Inc., a domestic corporation, incurs is in the jurisdiction of the United States. The U.S enforces a credit-based jurisdiction. This means that the U.S claims all worldwide income earned by Hall Oakes Inc. because it was incorporated in the United States. Generally, the U.S allows a foreign tax credit for income taxes paid to foreign countries on the income earned

EITC was created in 1975 to offset the burden of the social security and Medicare payroll taxes for low-income working people with children” (pg. 260). Furthermore, a second finding correlated to this was Eamon (2009), “The EITC was established in 1975 as part of an economic stimulus package to offset an economic recession and to reduce the disproportionate Social Security Tax burden of low-income working parents” (pg. 920). Later it was “expanded by President Regan, who deemed it the best antipoverty

One problem the policy faces is that even though the Earned Income Tax Credit encourages work for some groups, it actually discourages work for others; such as families with two earners who can decrease hours worked and still have the same amount of money due to the amount of credit. It is becoming a challenge for low-to-middle income families to benefit from the policy and even harder to gain upward social/economic mobility. It is leaving hard working families standing on the fence with often more