About the Earned Income Tax Credit

 

Owe less in taxes and get cash back from the IRS. 

The Earned Income Tax Credit (EITC) is a federal tax benefit for working people with low or moderate incomes.   It can offset some or all of the taxes workers must pay and can help cover any federal income tax workers may still owe at tax time.  Some people may also qualify to get cash back through an EITC refund.  In addition, some families can get the Child Tax Credit (CTC), which can be worth up to $1,000 per child.  Even those who don’t owe any income tax may still be eligible for these credits.

The big problem with the ETIC and the CTC is that not enough people claim the credits!  The IRS tells us that many eligible families do not file for these credits.  That means that millions of dollars are not finding their way into the pockets of people in our community who really need that money.

You can get these tax credits and not lose other public benefits.  The EITC and CTC do not count as income in determining eligibility for benefits like cash assistance, Medicaid, food stamps, SSI, public housing or child care.

To claim the credits, a person must file a tax return.  Many people feel confused or overwhelmed when faced with filing a tax return.  They often seek the services of a paid tax preparer who may charge $100 or more.  That preparer may persuade them to get a “quick refund,” which can add more fees.  That’s why it’s so important to know there is an alternative: Volunteer Income Tax Assistance (VITA).

The volunteers at a VITA site will help you prepare and file your taxes for free.  Taking advantage of free tax preparation through VITA is a simple way to save money while filing your taxes. Your tax refund, including credits like EITC and CTC, can help you become more financially secure – better able to keep up with household bills, stave off more dire situations such as mortgage foreclosure, and save for emergencies.

Don’t pay for filing, loans or quick refunds!  Use VITA, which has no fees or hidden expenses.  All returns are e-filed.

UWBB VITA Home Page