Your Taxable Income

Some people have notion in mind that they are taxed on all income they made. In reality, you are taxed on your taxable income rather than the gross income. The taxable income is the amount of income left over after you’ve made your pre-tax contributions to your 401(k) and after you’ve subtracted the tax breaks to which you’re entitled. Taxable income is your adjusted gross income (AGI) minus your standard or itemized deductions.

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What is Earned Income Tax Credit

the Earned Income Tax Credit (EITC), sometimes called EIC, is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate income working individuals and families. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim for the credit. To qualify, you must meet certain requirements and file a tax return,

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