Latest news with #EarnedIncomeCredit
Indianapolis Star
11-07-2025
- Business
- Indianapolis Star
Filing Separately Could Cost You More on Back Taxes - Clear Start Tax Explains Smarter Options for Married Couples
Clear Start Tax shows married couples how to avoid costly filing mistakes and save more when back taxes are involved. IRVINE, CA / ACCESS Newswire / July 11, 2025 / Married taxpayers dealing with back taxes are often surprised to learn that filing separately to 'protect' one spouse from IRS collections can actually lead to higher tax bills, lost credits, and fewer resolution options. According to Clear Start Tax, understanding the pros and cons of married filing jointly vs. separately is critical for couples hoping to resolve tax debt while preserving as much income as possible. 'Filing separately might feel safer when one spouse has IRS issues – but it usually ends up being more expensive,' said the Head of Client Solutions at Clear Start Tax. 'In many cases, joint filing opens the door to relief programs, better deductions, and faster resolution.' Why Filing Separately Can Backfire for Couples With Tax Debt Some couples assume that filing separately shields one spouse's income or refunds from being seized. While separate filing may delay IRS collection on a refund, it doesn't always protect shared income or assets, especially in community property states. And in many cases, filing separately ultimately results in: Higher overall tax liability Loss of key deductions and credits (like the Earned Income Credit or Child Tax Credit) Reduced access to Fresh Start benefits or less favorable Offer in Compromise terms Longer resolution timelines and more paperwork How Filing Together Could Be the Smartest Move for Tax Relief Even when one spouse owes back taxes, joint filing can result in lower taxes and greater access to IRS relief programs. Clear Start Tax helps couples explore the advantages of working together, not separately. For situations where only one spouse is responsible for the debt, programs like Innocent Spouse Relief or Injured Spouse Allocation may protect the non-liable spouse, without sacrificing the benefits of joint filing. 'The IRS gives couples a way to protect the innocent spouse while still getting the best outcome,' said the Head of Client Solutions. 'We help clients understand their rights and design a strategy that keeps more money in their household.' The Fresh Start Program Can Help Couples Settle Tax Debt Together This IRS initiative allows struggling taxpayers – including married couples – to settle or restructure their tax debt based on what they can reasonably afford. Clear Start Tax walks couples through every step of the process. Settlements for less than the full amount owed Reduced penalties and halted interest Affordable payment plans based on household income By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt. Joint Returns Come With Risk – But Also With Options While joint returns mean both spouses are legally responsible for the full tax bill, Clear Start Tax helps clients explore: Partial-pay agreements Spousal relief requests Asset protection strategies Custom IRS settlement negotiations These strategies can balance legal responsibility while still maximizing the couple's chances of saving money and moving forward. About Clear Start Tax Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm's unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry. Need Help With Back Taxes? Click the link below: (888) 710-3533 Contact Information Clear Start Tax Corporate Communications Department seo@ (949) 535-1627 SOURCE: Clear Start Tax View the original press release on ACCESS Newswire
Yahoo
05-03-2025
- Business
- Yahoo
Texans can earn more on their tax refund from the Earned Income Tax Credit. Here's how
Filed your taxes yet? You could be missing out on a tax credit that could benefit you. If you're on a tight budget and hoping that your tax refund can give you a boost, the Earned Income Tax Credit could possibly add even more to that tax refund deposit. Not sure what the EITC is? Here's what you need to know. According to the Internal Revenue Service, the EITC allows a tax break for people making low to moderate wages. Those who qualify can use the credit to either reduce the taxes they owe or increase their refund. Per the IRS, approximately 23 million workers and families received $64 billion from the EITC. The average amount of EITC received nationwide in 2023 was $2,743. To claim this credit, you must file a 1040 federal income tax return. Additionally, if you're claiming the credit for a qualifying child, you must include the Schedule EIC (Earned Income Credit) with your return. Here's what to know when filing: The child or children you claim for the credit must be related to you, but grandparents who are raising children can qualify. The child or children must live in the same home as you do for more than half of the tax year. For the tax year 2024, the same portion of the earned income tax credit is available for filers with three or more qualifying children with an adjusted gross income up to $59,899 if single and $66,891 if married filing jointly. Federal income tax returns for 2024 must be filed by April 15, 2025. Americans residing overseas have an extended deadline of June 16, 2025, to file. The IRS clarifies that the timestamp in your time zone when submitting your electronic return determines its timeliness. For those submitting paper returns, the IRS will consider them on time if they are correctly addressed, have sufficient postage, and are mailed and postmarked by the due date. For electronic filers, the deadline is 11:59 p.m. local time. This article originally appeared on Austin American-Statesman: What is EITC and who is eligible? What to know before filing in Texas
