The Earned Income Tax Credit (EITC)

With tax time quickly approaching, it is important for families to be aware of the benefits that are available to them, particularly the Earned Income Tax Credit. The EITC is a tax benefit for low to moderate income working people. It helps to offset taxes, to supplement very low wages, and to provide a work incentive.

Besides offsetting taxes, workers can also get cash back through the EITC refund. Workers who qualify for the EITC and claim it on their federal tax return can receive a refund check from the IRS even if their earnings were too small to owe income tax.

Workers with one child in their home and an income of less than $36,052 (or $41,132 for married workers) in 2011 could receive a credit of up to $3,094. The amount of the credit increases with the number of children living in the home. Workers between the ages of 25 and 64 who were not raising children in the home, and had an income below $13,660 (or $18,740 for married workers) could receive a credit up to $464. This credit can be a huge help to working families!

To get the EITC, workers with a “qualifying child” must file either Form 1040 or 1040A as well as Schedule EIC. Married workers must file a joint return. Workers who were not raising a “qualifying child” can file any tax form, even the 1040EZ.

Our partner Experiment in Self Reliance, hosts the EITC program in our community. You can also participate in National EITC Day which will be held January 27, 2012 at Career Connections and Prosperity Center on Waughtown St. Hope to see you there!