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Earned Income Tax Credit | Eligibility | Tax Prep Locations | What To Bring
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Frequently Asked Questions What Is The EITC Program? The EITC is a special tax benefit for working people who earn low to moderate incomes. It has several purposes: to reduce the tax burden on these workers, to supplement wages, and to provide a work incentive. How can I qualify to receive the EITC? The EITC has several qualifying factors and income guidelines. See eligibility for more information. Does the EITC affect other income I am receiving such as Medicaid, food stamps, SSI, or public housing? The EITC does not count as income for determining benefits like cash assistance. Some benefit program do count the EITC as a resource under certain circumstances. What is the Advance EIC? The advance EIC is a payment option where a worker can receive part of their earned income credit refund in their paycheck. This income is not taxable. The worker then receives the remainder of the refund after filing a tax return. A worker must have at least 1 qualifying child and expect to earn less than $33,000 in 2007 to be eligible. Eligible workers must complete IRS Form W-5, which the worker may obtain from his or her employer. How do you get the EITC? Workers raising a qualifying child in their home in 2007 must file either Form 1040 or 1040A and must fill out and attach Schedule EIC. Workers cannot get the EIC if they file form 1040EZ or do not attach a Schedule EIC. Workers who are not raising a qualifying child in their home in 2007 can file any tax form - including the 1040EZ. These workers write "EIC" on the earned income credit line on the tax form. A correct name and Social Security number must be provided for every person listed on the tax return and Schedule EIC. If this information is incorrect or missing the IRS may delay the refund. Workers can also get FREE help filing their tax forms, available at Volunteer Income Tax Assistance Sites (VITA). What are refund anticipation loans? Don't be fooled. Refund anticipation loans (RALs) prey on unsuspecting victims, they are advertised as "fast cash" or "quick tax refunds". RALs are high interest loans sometimes promoted by car dealerships, furniture outlets or jewelry stores that offer to prepare your taxes and try to convince you to use refund loans for in-store purchases. While RALs offer a fast cash loan (1 to 2 days), the cost can be as much as 20% of your tax refund. The IRS can direct deposit your refund in 7 to 12 days and filing your taxes could be FREE if you visit a VITA tax preparation site, or alternately you could I-CAN E-File and complete your taxes online over the Internet . |
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