Earned income tax credit: Don’t miss out, says the IRS

March 19th, 2008 at 10:32pm Deborah Austin

If you earned less than $40,000 in 2007 you might be eligible for as much as $4,716 in extra cash — through the federal Earned Income Tax Credit (EITC). The Internal Revenue Service says as many as one of four taxpayers eligible for the EITC doesn’t claim it.

The EITC was created for lower-income working people and families. The amount of credit you get does vary according to income and family size. Amounts change each year. The IRS says that this year the maximum EITC is:

* $4,716 for a family with two or more qualifying children;
* $2,853 for a family with one qualifying child; or
* $428 for taxpayers at least 25 years old but under age 65, with no children.

The state of Illinois also has an EITC for state income tax.

If you need help finding out about EITC eligibility, you can turn to Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. They’re often at community centers, libraries, schools and malls. VITA provide free tax return preparation to low and moderate income taxpayers, and TCE gives help to taxpayers age 60 and over. To find nearby volunteer sites, call the IRS at 1-800-829-1040.

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