Eligibility for the 2012 Earned Income Tax Credit (EITC) is an important issue for many married and individual tax payers. This tax credit (26 USC § 32 – Earned Income) was incorporated into the Internal Tax Revenue Code (IRC) in 1975 to encourage work (earned income) and offset social security taxes especially for those who receive what is described as low- to medium-ranges of income. The amount of the refundable credit, in excess of any personal taxes owed, has increased over the years and is now significantly affected by whether or not a household includes qualifying children.
Do you have business interest in a foreign bank or have any foreign financial accounts? We have provided information especially for US taxpayers living abroad or resident aliens regarding filing a personal income tax return. The Internal Revenue Service (IRS) has updated their Frequently Asked Questions (FAQ) regarding Foreign Bank and Financial Accounts (commonly referred to as FBAR) including specifically updated FBAR filing requirements and updated FBAR financial accounts.
Tax tips for US taxpayers living abroad are always useful. The America.gov Archive website is no longer updated but still provides important recommendations for both US citizens who live abroad and resident aliens. In summary, regardless of what kind of financial information you file (for example, income tax returns, estate returns, or gift tax returns), the filing rules are the same whether you live in the continental US or abroad. The rules also include paying any estimated taxes.