Earned Income Credit

Across America, many single parents looking forward to February, and not because of Valentine's Day. They're waiting to pay off bills and maybe even plan a small purchase they've needed. Why? Because it's tax time!

Yes, many other Americans approach this time of the year with dread, but there are a group of us whose hopes are high due to a little thing called Earned Income Credit.

In the best case, any family with two or more children that earned between $12,000 and $16,000 last year (that's just wages, child support does not count) gets a maximum credit of $4,716 in their refund. For those with one child, the max is $2,853.

Don't those earnings seem tiny and unrealistic? They are. But a parent with two kids earning $10 an hour and working 30 hours per week (often 5 days a week for 6 hours while the kids are in school - so they don't waste precious resources on child care) makes $15,600. Right in that window of opportunity.

There is a range of credit available. A single parent with one child, making $12 an hour and working 40 hours per week, would get $1321. Even a single person with no children making $10,000 a year (perhaps while attending school) would get $196.

IRS Publication 596, which you can access here, gives you all the info you need about Earned Income Credit. Make sure that when you are filing your tax return, you determine your potential eligibility for this important credit. There are always unexpected bills to catch up on, cars to be repaired or replaced, etc. You work hard, and you deserve a break.