Obama and the Earned Income Tax Credit: What You Must Know Now
President Barack Obama's new budget proposal is out, and it includes a key provision concerning the earned income tax credit. But many people don't even know what this credit is, let alone how it could help them.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the earned income tax credit proposal in the Obama budget. Dan notes that the credit is currently generous to those with children: Those with three or more children can receive maximum credits of more than $6,000. However, those with no children get maximum credits of roughly $500. The Obama budget would change that, doubling the credit and boosting the income levels at which the earned income tax credit currently phases out. With the idea of encouraging people to work and offsetting the impact of payroll taxes on low-income workers, the earned income tax credit is a solution that members of both parties have supported in the past, so Dan concludes that the idea could survive even if the budget on the whole has little chance of passing.
Is Uncle Sam about to claim 40% of your hard-earned assets?
Thanks to a 2013 law called the American Taxpayer Relief Act, he can -- and will -- if you aren't properly prepared.
Fortunately, The Motley Fool recently uncovered an arsenal of little-known loopholes to protect yourself from ATRA and help keep the taxman at bay when he inevitably comes calling. We reveal them all in a brand-new special report. Simply click the link below for instant, 100% FREE access. Protect your hard-earned wealth from Uncle Sam.
The article Obama and the Earned Income Tax Credit: What You Must Know Now originally appeared on Fool.com.Dan Caplinger doesn't own shares of any companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.