We couldn't possibly imagine how devastating it is to lose your home or personal and sentimental belongings because of a disastrous hurricane. But we can bring you some good news: The Internal Revenue Service (IRS) is giving those who lived in areas affected by hurricanes some help getting back on their feet. According to the IRS website, those who lived in an area affected by Hurricanes Harvey, Irma, or Maria last year, may qualify for the Earned Income Tax Credit (EITC).
An unexpected storm has the potential to make even the wealthiest of families homeless. Fortunately, the IRS is giving those who were affected a chance to get their life back. According to the IRS website, those who lived in an area affected by Hurricanes Harvey, Irma, or Maria last year, may qualify for the Earned Income Tax Credit (EITC).
The IRS is urging people who experienced an income drop as a result of living in a hurricane disaster area to use a "special computation method" to figure out their 2017 taxes.
This new method will let taxpayers who took an income hit last year to take advantage of the EITC using their 2016 earned income, opposed to their 2017 earned income.
"Under this method, taxpayers whose incomes dropped in 2017 can choose to figure the credit using their 2016 earned income rather than their 2017 earned income," states the IRS website. "Eligible taxpayers should figure the credit both ways — the regular way using 2017 earned income and this special way using 2016 earned income — to see which yields the larger EITC."
What is the Earned Income Tax Credit?
According to the IRS website, the EITC was designed for working people who don't earn a lot — which translates to $53,930 or less for 2017 — and meet other eligibility requirements. The EITC could mean up to a $6, 318 refund for working families with qualifying children, which would help tremendously!
To find out more about the special instructions on how to report, look at line 66 of your 1040, visit the IRS website, or talk to a certified tax professional.