Earned Income Tax Credit

Community Action Program, Inc. of Western Indiana wants to make life a little easier for workers by alerting them about a special tax credit that can put money in their pockets.

Earned Income Tax Credit (EITC) is a tax benefit for working people and their families.   It’s money workers can use for groceries, rent, utilities and other bills.  We want workers who may qualify for EITC to have all the information they need to get the EITC and get it right.

The amount of EITC varies by income, family size and filing status.  It can mean up to 506 dollars in EITC for people without a qualifying child, and up to $6,269 for those with three or more qualifying children. On average EITC adds 24 hundred dollars to refunds.

If you qualify for EITC, you must file a tax return, even if you have no tax to pay, to claim the credit. Workers should know you earned it, now file, claim it and get it.

With the exception of some who receive certain disability income, you must work for someone, or run your own business or farm to qualify for EITC. Workers who made less than $53,505 should see if they qualify for EITC using the EITC Assistant Tool.

Find out if you are eligible using the EITC Assistant; it’s available in both English and Spanish. The Assistant helps you:

  • find your filing status,
  • find out if you have a qualifying child or children,
  • verify if you are eligible for EITC, and
  • estimate the amount of your credit.

Let the Assistant help you get it and get it right.  EITC Assistant Tool

Also, if you make less than $54,000, you qualify for free tax return preparation through volunteer sites. IRS-certified volunteers prepare your tax return and find out if you qualify for EITC and other refundable credits. Community Action Program, Inc. of Western Indiana is a Volunteer Income Tax Assistance entity through our Covington office.  Call Alice Young at 765-793-4881 to schedule an appointment and/or get additional information.

But, make sure you get the right amount of credit due you. If you have someone prepare your return, make sure to bring the following to your preparer:

  • A valid driver’s license or other photo id card
  • Social security cards, a social security number (SSN) verification letter for all persons listed on the return
  • Birth dates for all persons listed on return
  • All income statements: Forms W-2 and 1099, Social Security, unemployment, and other statements, such as pensions, stocks, interest and any documents showing taxes withheld. If you run a business or farm, records of all income earned.
  • All records of expenses, such as tuition, mortgage interest or real estate taxes. And, if you run a business or farm, records of all related expenses.
  • Copies of last year’s state and federal tax returns, if available
  • Bank routing numbers and account numbers to direct deposit any refund
  • Dependent child care information: name and address of who you paid and either the caretaker’s SSN or other tax identification number
  • If you purchased coverage through the Health Insurance Marketplace, Form 1095-A, Health Insurance Marketplace Statement
  • Both spouses to sign forms to e-file a joint tax return

 

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