Families with children may reap some additional tax benefits when filing their 2010 returns, according to Liberty Tax Service. The temporary increase in the Earned Income Tax Credit (EITC) for 2009 will continue through 2012. Prior to 2009, the credit percentage for the EITC for a taxpayer with two or more qualifying children was 40 percent of the first $12,570 of earned income. The new law increases the percentage to 45 percent of the first $12,570 of earned income for taxpayers with three or more qualifying children. The EITC phase-out range has also been adjusted upward by $1,880 for joint filers to eliminate any marriage penalty.

(1) comment

ValenS
ValenS

That out of the way, doesn't the deduction simply allow (or perhaps encourage) higher interest rates? I tend to wonder if I don't pay a higher interest rate, but deduct it, thus transferring money from the IRS to the bank. A nice subsidy, not for me, but for the bank? Now that the system is gamed the way it is, I'm not optimistic the deduction can be removed, but I do tend to wonder whether I'd be the same financially with no help of online no fax payday loans, or perhaps better off, with lower interest and no deduction.

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