The Indiana Department of Revenue (DOR) continues to partner with the Internal Revenue Service (IRS) to share the top tax filing season concerns referred to as the “IRS Dirty Dozen” tax scams for 2018. The eighth scam in the 12-part series is falsely inflating deductions or expenses on tax filings. The Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) are the two most commonly abused. These credits were designed to benefit low and moderate-income taxpayers. The EITC is a credit for qualified individuals who work and have earned income under $45,000. To claim this credit you must be specific qualifications. More information on the EITC can be found on DOR’s website at http://www.in.gov/dor/5695.htm. The CTC was adopted to reduce the tax liability of families, with a credit of up to $1,000 per qualifying child under age 17. More information on the CTC can be found on the IRS website at https://www.irs.gov/credits-deductions/individuals/child-tax-credit-glance. Both the EITC and CTC significantly reduce tax liabilities on low and middle-income families with children. To view the first seven of “IRS Dirty Dozen” tax scams of 2018, visit http://www.in.gov/dor/6137.htm.
April 7th, 2018|Local News|