-Published: Wednesday, November 13, 2019-

By the A.M. Costa Rica staff and wire services

With the tax filing season quickly approaching, the Internal Revenue Service recommends expats taxpayers take time now to determine if they are eligible for important tax credits.

This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. The IRS recently updated its Get Ready page with steps to take now for the 2020 filing season.

The earned income tax credit is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it's a refundable credit, those who qualify and claim it pay less federal tax, pay no tax or may even get a tax refund.

The credit can be up to $6,557 for working families with three or more qualifying children. Workers without a qualifying child may be eligible for a credit up to $529.

To get the credit, people must have earned income and file a federal tax return, even if they don't owe any tax or aren't otherwise required to file.

The expats taxpayers can use the earned income tax credit assistant to find out if they are eligible, determine if their child or children meet the tests for a qualifying child and estimate the amount of their credit.

Taxpayers also can claim the child tax credit if they have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of that amount can be refundable for each qualifying child. So, like the earned income tax credit, the child tax credit can give a taxpayer a refund even if they owe no tax.

The qualifying child must have a valid Social Security number issued before the due date of the tax return, including extensions. For tax year 2019, this means April 15, 2020, or if a taxpayer gets a tax-filing extension, Oct. 15.

The amount of the child tax credit begins to reduce or phase out at $200,000 of modified adjusted gross income or $400,000 for married couples filing jointly.

Publication 972, Child Tax Credit, available now on IRS.gov, has further details and will soon be updated for tax year 2019.

Two credits exist that can help taxpayers paying higher education costs for themselves, a spouse or dependent. The American opportunity tax credit and the lifetime learning credit are claimed on Form 8863, Education Credits. The opportunity tax credit is partly refundable.

To get either credit, the taxpayer or student usually must receive Form 1098-T, Tuition Statement, from the school attended. Some exceptions apply. Those who may be eligible can see the instructions on Form 8863 for details.

The IRS urged taxpayers to use the agency's interactive tax assistant to help determine if they can claim any of these credits. The interactive tax assistant also provides answers to general questions on filing status, claiming dependents, filing requirements and other topics.

The IRS.gov site includes tools, filing options and other services and resources. Taxpayers increasingly use IRS.gov as their first resource for tax matters. Information in languages other than English is available under the language tab on IRS.gov.

According to IRS, filing electronically is easy, safe and the most accurate way to file the tax return. There are a variety of free electronic filing options for most taxpayers including using IRS Free File for taxpayers with income below $66,000, or fillable forms for taxpayers who earn more.

Taxpayers who generally earn $56,000 or less can have their return prepared at a volunteer income tax assistance site.

The tax counseling for the elderly sites offer free tax help for all taxpayers, particularly those who are 60 years of age and older.

To find out more information on tax payments at IRS.gov help tool site.



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