WASHINGTON — The Internal Revenue Service
and community partners nationwide today launched their annual outreach campaign
aimed at helping millions of Americans who earned $49,078 or less take
advantage of the Earned Income Tax Credit (EITC).
Today, Earned Income Tax Credit Awareness
Day, local officials and community organizations across the nation are holding
news conferences and sponsoring other events highlighting the benefits of this
key work incentive for low-and moderate-income workers and working families.
The outreach campaign is necessary
because one-third of the eligible population changes annually as their
financial, marital and parental statuses change. Although an estimated four out
of five eligible workers and families get the credit, one in five still miss
out on it, either because they don't claim it, or don't file a return at all.
"The EITC provides a financial boost for millions of
hard-working Americans. But people can easily overlook this important credit,
especially if their financial situation has changed. The IRS reminds taxpayers
to look into this valuable credit to see if they qualify," said IRS
Commissioner Doug Shulman.
The EITC varies
by income, family size and filing status. People can see if they qualify by
visiting IRS.gov and answering a few questions using the EITC Assistant.
In tax year 2010, almost 26.8 million eligible workers
and families received over $59.5 billion total in EITC. The average EITC amount last year was around $2,200.
Workers who
earned $49,078 or less from wages, self-employment or farm income last year
could receive larger refunds if they qualify for the EITC. That could mean up
to $464 in EITC for people without children, and a maximum credit of up to $5,751 for those with three or more qualifying children. Unlike most deductions and credits, the EITC is
refundable. In other words, eligible people may get a refund from the IRS even
if they owe no tax.
How to Claim the EITC
To get the EITC, workers must file a tax
return, even if they are not required to file, and specifically claim the
credit. Those eligible for the EITC have free options to file a tax return to
claim the credit:
- Free File on
IRS.gov Free brand-name tax software walks people through a question
and answer format to help them prepare their returns and claim every credit and
deduction for which they are eligible. The program also allows people to file
electronically for free, giving them access to all their money often in as
little as ten days.
- Free tax
preparation sites EITC-eligible workers can seek free tax preparation
at more than 12,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling
for the Elderly (TCE) sites. To locate the nearest VITA site, people can call the
IRS at 800-906-9887.
Taxpayers can also find VITA/TCE sites by calling their community's
211 or 311 line for local services.
- IRS Taxpayer Assistance
Centers EITC-eligible workers can seek free assistance in IRS locations
across the country. Locations are listed online at www.IRS.gov.
Hours and services offered vary by location and should be checked before
visiting.
More information on EITC and detailed
eligibility rules are available at www.irs.gov/eitc.
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