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For tax year 2016, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families Maximum Credit Amounts The maximum amount of credit for Tax Year 2016 is: $6,269 with three or more qualifying children
$5,572 with two qualifying children,
$3,373 with one qualifying child
$506 with no qualifying children

For tax year 2016, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families Maximum Credit Amounts The maximum amount of credit for Tax Year 2016 is: $6,269 with three or more qualifying children
$5,572 with two qualifying children,
$3,373 with one qualifying child
$506 with no qualifying children

Lower Capital Gains and Dividend Tax Rates Extended Through 2012.
The tax rate reductions for long-term capital gains remain in effect for 2011 and 2012.
If tax bracket = 10% or 15% the Short Term CG taxed at ordinary rates
Long Term CG and Qualifing Dividends tax rate = 0%
If tax bracket = greater than 15% the Short Term CG taxed at ordinary rates
Long Term CG and Qualifing Dividends tax rate = 15%

A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify.
The phase out for married taxpayers is Adjusted Gross Income between $160,000- $180,000.
The phase out is between $80,000 and $90,000 for single, head of household or qualifying widower(s) filing status taxpayers.
Married filing separately status are not allowed a American Opportunity credit.

The American Opportunity Tax Credit remains in effect through 2016.
A credit is available up to $2,500 per student for the first 4 years of higher education for tuition, course related books, activity fees and any equipment that must be purchased from the educational institution as a condition of enrollment. Room & Board expenses do not qualify.
The credit begins to phase out for single taxpayers who have adjusted gross income between $80,000 and $90,000 and for joint tax filers when adjusted gross income is between $160,000 and $180,000. The credit is unavailable to taxpayers whose adjusted gross income exceeds the $90,000 and $180,000 thresholds.

The credit of $1,000 per eligible child.

YES- The IRS announced a new six month payment extension form 1127-A which gives you six more months to pay also and avoid the failure to pay penalty. This form is only available for those taxpayers who are unable to pay but were unemployed in the current year for at least 30 consecutive days during the current year or were self employed and suffered greater than a 25% reduction in business income in the current year. To qualify you must also meet certain income limitations. To request an extension of time to pay you must file this form 1127-A separately. Do not attach it to your tax return or do not attach it to form 4868, the other extension form. Payment must be paid in full by Oct 15, 20XX or you will retroactively be assessed penalties and interest.

If you can’t file your return on time, you can file an extension with form 4868. While everyone is entitled to an automatic six month extension to file, people misunderstand that this automatic extension form only gives you more time to file and not more time to pay.

If you can pay the IRS in less than 120 days from April 15, you should file your return and send in as much money as you can afford to send in with the return. The IRS will send you a bill every 30 days up to 120 days which at that time you will receive the dreaded certified letter saying you are out of time.

The failure-to-pay penalty is generally half of 1 percent per month with an upper limit of 25 percent. You can borrow the money somewhere else. You can pay your taxes with a credit card, however the merchant processing fees of approximately 3% will be your responsibility