[tabi] tax credit
- From: "Sila Miller" <silam@xxxxxxxxxxxxx>
- To: <tabi@xxxxxxxxxxxxx>
- Date: Thu, 4 Feb 2010 20:16:36 -0500
Income Tax Credit also called EITC or more simply EIC is a credit that has been
making the lives of working people a little easier for 35 years. Yet it remains
little known, possibly because people move into and out of eligibility as their
income, marital statuses and parental statuses change. Please take
a look at the article pasted below to learn more.
Earned Income Tax Credit Can Put Money in Your Pocket
You could be cheating yourself at tax time, even if you are not required to
file a tax return. The IRS estimates one in four eligible taxpayers will
overlook
the Earned Income Tax Credit - or EITC - worth up to $5,600 or more this year.
EITC is a refundable tax credit, meaning you can get money back even if you owe
no federal income tax or had no tax withheld. And, if you owe tax, it can
offset the amount you must pay.
The credit has been making the lives of working people a little easier for 35
years. Yet it remains little known, possibly because people move into and
out of eligibility as their income, marital statuses and parental statuses
change.
Unlike other tax credits, EITC is based on a combination of factors such as the
source and amount of your income, or combined income if married, whether
you have qualifying children and how many. Although children are not required
for eligibility, they increase the amount of your credit. Through new
legislation,
families with three or more children can get even more money.
The credit is complex, but worth exploring. It's even more valuable if your
state has a corresponding tax credit. If you had less than $48,000 in income
from wages, self-employment or farming in 2009, see if you qualify. Find more
information at
www.irs.gov/eitc.
Use IRS's online EITC Assistant to determine your eligibility and the amount of
your credit, or use the worksheet in your tax instruction package.
No-cost help is available in many communities. Volunteer income tax assistance
sites or IRS Taxpayer Assistance Centers will compute your EITC and prepare
your return at no charge. To locate a volunteer site, call your community's 211
or 311 number for local services or call the IRS at 1-800-906-9887. Locate
an IRS Taxpayer Assistance Center in the blue pages of your telephone directory
Remember: if you are eligible, you must file a federal income tax return, even
if you are not otherwise required to file, and you must specifically claim
the credit to get it.
Per the IRS, rural and non-traditional families -- such as grandparents raising
grandchildren -- childless workers, and
Spanish-speaking taxpayers are among
those who most frequently overlook the credit.
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