13 Jan 2011
For more information, click on the link below:
You could be eligible to get more money back from the IRS – as much as $5,666.
If you earned less than $48,362 from wages, self-employment or farming last year, you may qualify for a refundable tax credit called the Earned Income Tax Credit, or EITC. But you must file a federal income tax return claiming the credit to get it.
EITC can be a big financial boost for working people hit by hard economic times. Many individuals who saw their incomes drop in 2010 may qualify for the first time.
The credit has been making the lives of workers a little easier for more than 35 years. Yet it remains little known, possibly because people move into and out of eligibility as their financial, marital and parental statuses change. IRS estimates four of five eligible people claim and get their EITC.
Unlike other tax credits, both EITC eligibility and the amount of the credit is based on several factors such as the source and amount of your income, or combined incomes if married, whether you have qualifying children and how many. Workers without children also may qualify.
The amount of the credit peaks then phases out at certain income limitations depending on filing status and other factors. You may qualify for EITC even if you had no federal tax withheld or are not otherwise required to file.
The credit is complex, but worth exploring.
Free help preparing your return and claiming EITC is available at volunteer income tax assistance sites and IRS Taxpayer Assistance Centers.
According to the IRS, rural and non-traditional families -- such as grandparents raising grandchildren -- childless workers, and non-English speaking taxpayers are among those who most frequently overlook the credit.
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. Find more information about EITC at our EITC workshop.
Our other tax workshops are going to cover the following topics:
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
The Basics of the Gambling Tax Laws
First-Time Homebuyer’s Credit Repayment
To learn more about these topics, please contact:
Nevada Legal Services – LITC
530 S. 6th Street
Las Vegas, NV 89101