Posts Tagged ‘income tax credit’

Recent federal legislation can mean tax savings for employers and may have an impact on your business and your payroll activities.

HIRE Act

The Hiring Incentives to Restore Employment (HIRE) Act that was signed into law on March 18, 2010.  It provides financial incentives for employers who hire unemployed workers and retain those workers for at least one year. If you are hiring, you could benefit from two provisions in the bill: Social Security Tax Exemption and Business Tax Credit. You can also find information from the IRS at http://www.irs.gov/newsroom/article/0,,id=220326,00.html.

According to Texas Comptroller Susan Combs a slow economy means more Texas families may qualify to claim the Earned Income Tax Credit (EITC) on their federal income tax.

EITC refunds are based on family size and income. For 2009:

• Families that earned less than $48,279 and have three or more children may qualify for a tax credit up to $5,657
• Families with two children and income less than $45,295, may qualify for a tax credit up to $5,028
• Families with one child and an income less than $40,463 may qualify for a tax credit up to $3,043
• Families with no children and earning less than $18,440, may qualify for a tax credit up to $457

More information about the EITC, printable materials for businesses and community organizations to distribute can be found on the Comptroller’s Web site at http://www.window.state.tx.us/taxinfo/eitc/.