2018 Earned Income Tax Credit: 3 Limits You Need to Know
The earned income tax credit is one of the most valuable credits in the tax laws, helping millions of families save thousands of dollars each year. Yet there are complex rules that govern the credit, and only some taxpayers qualify to take it. Each year, the income limits that restrict the use of the credit and the maximum amount of credit that you can claim change, and there's also a limit on the amount of investment income you're allowed to have. Below, we'll go through these limits for 2018 with an eye toward showing you whether you're likely to qualify for this lucrative tax break.
The purpose of the earned income tax credit is to offer tax savings to workers with relatively modest incomes. Despite the fact that the income limits on eligibility extend well into what most would consider to be the middle class, the largest credits are reserved for those with incomes significantly below the upper limits.
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Source: Fool.com
