Earned Income Credit (EIC): What Is It?

By William Blake

In the world of taxes, tax credits help taxpayers to lower their tax bill. One such credit is the Earned Income Credit, or EIC. This credit was instituted as a way to help low income wage earners to rise above their circumstances.

Set up in the year 1975, the concept behind the earned income credit was that since poor workers were having to pay so much in income taxes that they could never hope to move up the financial ladder they needed to be able to pay less taxes. By means of the EIC, low income families are given back a large amount of the money that has been deducted from their pay because of taxes throughout the year.

The amount of the earned income credit has increased over the years. Those who fought for the tax credit agree that it is a better way to help people living in poverty than trying to raise the minimum wage. People that receive the tax credit sow that money back into the economies of their neighborhoods where it helps everyone.

There are three types of EIC eligible incomes. The first is money that is earned at a job. This money would include any wages earned by means of tips. If you are given a bonus by your employer, it can also be counted towards the earned income credit.

Self-employed earnings are also eligible for the earned income credit. If you own your own business but the money you earn with it is not enough to sufficiently care for your family, you may be able to receive the EIC. Any and everything your business earns can be counted.

Lastly, money made by someone under your care is considered. Teenagers have weekend and/or summer jobs. The money may not be enough for them to file a return of their own, but it is added to what their parents earn. Together, the income determines the amount of the earned income tax credit you qualify to receive.

The money that your investments earn for you is counted as income by the IRS, as is money you collect because of unemployment. These sources of income may reduce your chances of getting the earned income credit. For example, if your investments earn you more than $2,800 in one year, you are disqualified from the EIC.

Sadly, many tax filers are not even aware that they qualify for the earned income credit. Many people think they don't qualify or just are not aware of the EIC. Some people do not earn enough to have to file their taxes, but still qualify for the EIC. Be sure to check into the EIC so that you don't miss out on this opportunity.

About the Author:

Tire of barely keeping up with your credit card debt? Learn some simple credit card tips on the Debtopedia website. Get a free copy of my report "Secrets Of Credit Card Debt" at http://www.debtopedia.com

How To Get Bad Credit Student Loans

By Dave Davidson

If you are seeking to further your education by attending college, most likely you can't afford the tuition costs on your own. You might need some assistance to make ends meet and realize your dream of attending college. But what if you have bad credit or even no credit history at all?

Lots of people ask me if they will need to improve their credit score before they apply for student loans. I almost always tell them that this won't be necessary. The government provides several different types of loans that help people that have bad credit.

The government provides many different types of loan programs, and most of them are based on the need of each individual. One such program is the Stafford loan program, where people qualify based on need. Credit history isn't part of the application process, and also isn't considered as part of the approval process.

Another loan type that's offered by the federal government is Perkins loans. This loan is extremely cheap over time and is intended to be used only by individuals that have extreme need. In order to qualify, a person must show that they have need, but credit history isn't part of the approval process.

With Pell grants, you aren't asked to repay any of the money that you receive. Eligibility for these grants is based solely on the need of the individual. Usually people try to get Pell grants first, and then take out loans as it's necessary.

If you don't qualify for loans that are issued to those with financial need, there are still options for bad credit student loans. There is another kind of Stafford loan that is unsubsidized. This means that once the loan is issued, it begins accruing interest and you are responsible for repaying that interest in full.

The government doesn't assist in any way with the payment. But generally, the interest rates are much lower than other lending options. And like all of the loans and grants mentioned, your bad credit history won't disqualify you from receiving the loan. So if you want to go to college, there is always a way.

About the Author:

Dave helps educate people about student loans for people with bad credit and cheap bad credit student loans.

Reverse Mortgage " Will Money Be Left Over For the Heirs?

By Almado Vanrock

One of the biggest questions I get from my prospective reverse mortgage customers centers around what happens to the home and more importantly the homes equity after death.

Borrowers getting reverse mortgages can expect their lender to allow them to pull cash out of the equity of the home equal to 50% to 75% of the formal valuation of the house.

Where the lender makes money is on the accumulation of interest on top of the money which is loaned to the borrower. When the home is sold, many times at death of the borrower, the bank is repaid.

Reverse mortgage lenders use a calculation, based upon value, age, and interest rates to determine the amount to lend. This calculation creates a recognized safe position for banks.

The algorithms tell the lender it is making a calculated gamble to loan a borrower X amount of money. Lenders, like insurance companies know the deal, and way more often than not there will be equity remaining.

At death the home is typically willed to the heirs. The heirs are given roughly a year to sell the home. If it takes longer the lender normally allows extensions.

A twelve month window is not necessarily set in stone. Reverse mortgage companies love interest accumulation and will gladly give extensions on top of the 12 month sale time-frame if the home is being actively marketed per FHA guidelines.

It will eventually sell. When the home sells the bank is repaid the original principal amount loaned plus accumulated interest over the years. That is all the bank is entitled to receive.

Reverse mortgage folklore explains how the mortgage company gets all of this equity. Dirty, filthy banks praying upon seniors. On the contrary, the estate gets it.

From time to time a senior lives far longer than expected and the mortgage amount is greater than the sale price of the home. If this is the case, no worries for the borrower or heirs.

The HECM or reverse mortgage is a non-recourse mortgage. This means the most the bank is entitled to receive is the sale price of the home minus closing costs. If more is owed, too bad for the bank.

Regardless of some of the mythology reverse mortgages are fairly safe for the borrower and estate.

About the Author:

Bone-up onCalifornia reverse mortgage here. Numerous questions get answered on the reverse mortgage of California EDU site.

Practical Guide On Debt Consolidation

By Don Pedro

Debt consolidation is a way to manage or even reduce the amount of debt someone has. It's a specially panned procedure that when its applied properly anyone carrying heavy loads on the shoulder can find a bit of relief.

People suffer from debt due to varieties of reasons. Most of the times people find themselves in debt due to the high interest rates. And then, another big reason for debt s using multiple credit cards and at the same time spending too much with shop until you drop mentality. Debt can take away the joy from life; however the situation can be improved by consolidating debt.

A solution to the debt crisis can be debt consolidation, where one consults the debt consolidation professionals and together they make plans to rid the sufferer of debts step by step. A credit card debt consolidation means the debts from multiple credit cards are transferred to one credit card which makes debt management easier.

Along with a debt consolidation plan you will also need a debt reduction plan. The debt reduction programs are lead by professionals who will then act as an intermediating between you and the creditors. You won't need to pay different creditors every month.

Along with debt consolidation programs a debt reduction plan is also required. A debt reduction plan means t he proper planned approach to meet the crisis and reduce the heavy debt condition.

Those who have more than one credit card and have dues in them, its extremely difficult for them to keep a track about the debts and the amount that is to be paid for the debts in all those cards. A credit card consolidation allows them to take care of all the debts by just managing only one credit card.

It's extremely difficult for someone to fight debt without having support from others. Here the debt reduction management professionals come to a big aid. One can use their home as collateral or his car or something else like that to receive debt reduction loans. These loans come with flat and low interest rate which is very much affordable.

The internet is your sure bet whe looking for debt consolidation help. There are many resources on the web for you that can help you consikdate your debts without going for bankruptcy. Also, there are many debt consolidation agencies on the web. Simply go through their sites and see if they can help you deal with your debt problem. IN conclusion, never look for shortcut when looking for ways to dela with your debt problems.

About the Author:

Don Pedro writes about interesting articles about Credit Card Debt Consolidation Nevada , and Christian Debt Consolidation Consolidate Debts Credit on the website at http://www.debtconsolidationclass.com