| THERESA: Hi! I’m Theresa Branscome from the Internal Revenue Service. The Earned Income Tax Credit has been making the lives of working families a little easier for the past 36 years. But as people struggle to make ends meet during these hard economic times, it’s as important as ever. Here to talk about EITC is Verlinda Paul. Verlinda is the Director of the EITC Office at the IRS. Verlinda, thanks for being here!
VERLINDA: Thank you, Theresa!
THERESA: First of all, what is the Earned Income Tax Credit?
VERLINDA: The Earned Income Tax Credit is for people who work but don’t earn a lot of money. Last year more than 25 million people claimed this credit and received more than $57 billion. On average that’s $2,000 per person. Yet we know that more people may be eligible this year, because of today’s economy. More workers may qualify due to reduced incomes.
THERESA: So how do you know if you’re eligible?
VERLINDA:You need earned income, and that means being employed by others or being self-employed such as a farmer. Also there are some other things you need to know. You need to have a Social Security Number, and you need to be at or below certain income amounts, and it also depends on your family size and marital status.
THERESA: Verlinda, is there anything in particular you want people to know about the Earned Income Credit this year?
VERLINDA: Many people may be eligible for the first time and not even know it. For example, if you saw your income go down due to job loss or due to going from full-time to part-time work or your marital status changed or you may have had a child, as long as you meet the income requirements, you may qualify for the credit.
THERESA: What are the income requirements?
VERLINDA: You need to have income at or below $48,000.
THERESA: And what’s the maximum you can get from this credit?
VERLINDA: The maximum credit this year is more than $5,600.
THERESA: Do you have to have children in order to get this credit?
VERLINDA: No, you don’t. That’s one of the reasons people think that they might not be eligible for the credit.
THERESA: Are there any other groups that think they are ineligible but really they are?
VERLINDA: Yes, people whose income falls below the requirement to file a tax return; also farmers, rural residents, people caring for individuals with disabilities; also, nontraditional families, such as grandparents raising grandchildren may not be aware that they may qualify.
THERESA: So how exactly do you get this credit?
VERLINDA: You must file a tax return, even if your income does not require you to file, and you must claim the credit on your tax return.
THERESA: Now, is it kind of hard to apply for this credit?
VERLINDA: This credit is complex, but there’s free help available.
THERESA: Such as?
VERLINDA: We partner with over 12,000 Volunteer Assistance Centers and we have 400 Taxpayer Assistance Centers throughout the country. Finally, you can go to IRS.gov and use Free File and prepare and eFile your tax return all for free.
THERESA: All right, Verlinda, any last message for everyone?
VERLINDA: Find out if you’re eligible for the credit, and if you are, file and claim it.
THERESA: All right, well, thank you so much Verlinda! And you can do all this at our website, which is irs.gov/eitc. |
Louisville Asset Building Coalition (LABC) is accepting volunteer applications for the 2011-12 tax season. At the heart of our mission and services, volunteers help local families receive the tax credits they’ve earned and build financial security. Positions range from greeters and intake specialists to certified tax preparers and site coordinators.
