A Federal Tax Credit for Working Taxpayers: Do You Qualify? (NAPSA)—KEachyear, millions of working Americansqualify for some additional tax relief by claiming the Earned Income Tax Credit (EITC), tax relief for people who work, but do not earn high incomes. Those who qualify can reduce their federal tax hability and potentially receive a cash refund. The EITC does not affect most other welfare and disability benefits. For tax year 2002, more than 20 million taxpayers claimed the credit and more than $36 billion dollars in tax credit payments were distributed to low-income workers around the country. Before claiming the EITC, it’s Criteria for Claiming the EITC QO Must have earned income under a certain amount QO Must have a valid Social Security number Q Filing status cannot be “married filing separately” Q Generally, must be a U.S. citizen or resident alien all year Q Cannotfile Form 2555 or Form 2555-EZ Q Investment income is limited QO Cannot be the qualifying child of another person ; For details, see www.irs.gov/eitc important to know if you'reeligi- If you were employed for at least part of 2003, you may beeligible for the EITC if: e You earned less’ than $12,230, did not have any qualifying children, and wereat least age 25 and under age 65 on December 31, 2008, or e You earned less than $30,666 and have one qualifying child, or e You earned less than $34,692 and have more than one qualifying child. “An estimated 25 percent of peo- ple who qualify for the EITC don't claim it each year,” said David R. wa IRS ble. Taxpayers do not need to have children to claim the EITC, but must meet certain requirements. 4 F teria and instructions on how to claim the tax credit. Copies of the publication are available in English and Spanish, and can be found on the IRS’ Web site, www.irs.gov or by calling 1-800-TAX FORM (1-800-829-3676). Taxpayers also can seek assistance from a tax preparer or from a Volunteer Income Tax Assistance and Tax Counseling for the Elderly site that offers free tax help for those who can- not prepare their own returns. Operated by trained volunteers, these sites are generally located at community and neigh- Williams, Director, EITC at the IRS. “The credit was designed to borhood centers, libraries, schools, there are many resources available Taxpayers may qualify to have their returns filed electronically help hard-working taxpayers get what they honestly deserve, and to help them with the process.” Help is Available If you believe you may qualify for the EITC, check IRS Publication 596, Earned Income Credit, which offers eligibility cri- shopping malls and other convenient locations. File Federal Taxes for Free for free and receive their refund faster. Eligibility requirements can be found at www.irs.gov in the free file section.
