The federal earned income credit (EITC) is a tax credit for people who work and have low wages. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or receive a refund.
The United Way-led community-wide effort to educate eligible families about EITC is called "Claim It!"
Eligible taxpayers can file three years back for unclaimed earned income tax credit. Each year, however, many eligible taxpayers fail to claim it.
Basic eligibility and benefit guidelines are as follows:
• Workers who were between the ages of 25 and 65 during 200,7 who do not have a qualifying child and who had earned income below $12,590 (or $14,590 if married and filing jointly). For these workers, the maximum EITC is $428.
• Workers with one qualifying child and earned income of less than $33,241 (or $35,241 if married and filing jointly). For these workers, the maximum EITC is $2,853.
• Workers with more than one qualifying child and earned income of less than $37,783 (or $39,783 if married and filing jointly). For these workers, the maximum EITC is $4,716.
Minnesota also offers state earned income credits. In Minnesota, this state credit is called the Working Family Credit. Taxpayers who qualify for the federal earned income tax credit also qualify for the Minnesota Working Family Credit.
For more information on federal Earned Income Tax Credits and Minnesota Working Family Credits, visit the IRS web site at www.irs.gov/eitc
For more information on the state\'s tax credit, go to the Department of Revenue web site, www.taxes.state.mn.us and run a keyword search for"Working Family Credit."
"Claim It!" also offers free tax preparation by trained preparers for those with qualifying incomes, – below $30,000 for individuals or $40,000 for families – senior citizens, people with disabilities and limited-English speakers. For a list of free tax preparation sites, call United Way 211 or, for cell phone users, 651-291-0211. Preparation sites also are on the Department of Revenue web site. Search for"free tax preparation sites."
Reprinted from The Union Advocate newspaper.
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The federal earned income credit (EITC) is a tax credit for people who work and have low wages. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or receive a refund.
The United Way-led community-wide effort to educate eligible families about EITC is called "Claim It!"
Eligible taxpayers can file three years back for unclaimed earned income tax credit. Each year, however, many eligible taxpayers fail to claim it.
Basic eligibility and benefit guidelines are as follows:
• Workers who were between the ages of 25 and 65 during 200,7 who do not have a qualifying child and who had earned income below $12,590 (or $14,590 if married and filing jointly). For these workers, the maximum EITC is $428.
• Workers with one qualifying child and earned income of less than $33,241 (or $35,241 if married and filing jointly). For these workers, the maximum EITC is $2,853.
• Workers with more than one qualifying child and earned income of less than $37,783 (or $39,783 if married and filing jointly). For these workers, the maximum EITC is $4,716.
Minnesota also offers state earned income credits. In Minnesota, this state credit is called the Working Family Credit. Taxpayers who qualify for the federal earned income tax credit also qualify for the Minnesota Working Family Credit.
For more information on federal Earned Income Tax Credits and Minnesota Working Family Credits, visit the IRS web site at www.irs.gov/eitc
For more information on the state\’s tax credit, go to the Department of Revenue web site, www.taxes.state.mn.us and run a keyword search for"Working Family Credit."
"Claim It!" also offers free tax preparation by trained preparers for those with qualifying incomes, – below $30,000 for individuals or $40,000 for families – senior citizens, people with disabilities and limited-English speakers. For a list of free tax preparation sites, call United Way 211 or, for cell phone users, 651-291-0211. Preparation sites also are on the Department of Revenue web site. Search for"free tax preparation sites."
Reprinted from The Union Advocate newspaper.