What You Need to Know About the Earned Income Tax Credit

Are You Getting What You Deserve?

There is approximately two weeks until income taxes must be filed with the Internal Revenue Service, and they are doing what it takes to get the word out about earned income tax credit to taxpayers.

They want everyone who is eligible for this credit to have full access to the information needed to receive what the government is providing to them.

$59 billion was claimed by 26 million taxpayers last year, and that included close to 135,000 residents of Nebraska whose share was greater than $278 million.

However, the IRS indicates that 20 percent of those qualifying for the earned income tax credit are not asking for it.

IRS spokesman Christopher Miller stated, “We’re currently hitting four out of five families that are eligible, and we’d like to make it five out of five.”

He also said that the impact of the recession, which includes job losses, hours and pay cuts could mean that there will be even greater numbers of families who will be eligible this year.

Qualifying factors that will allow individuals as well as families to claim earned income credits are as follows: a single filer having no children is limited to adjusted gross income of $13,460, and a married couple having three children will be allowed to earn as much as $48,362 and qualify for this credit.

Credits begin at $457 for a single person having no children to $5,666 for a married couple that has 3 children.

This credit can be included in part of the refund that a taxpayer receives even when that person has little or no tax liability.

However, the earned income tax credit is not automatic, according to Miller. It must be included when filing a tax return. That makes it the responsibility of the individual to make sure that they are on top of every issue surrounding filing an income tax return.

You can learn more information pertaining to the earned income tax credit and find out if you qualify by going to the official IRS site: www.irs.gov/eitc.

If you have a tax problem and would like to discuss this with Tax Attorney Mary E. King, you can contact her at (941) 906-7585 for a free consultation.