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The
Earned Income Tax Credit is a federal government
program to help working families. It reduces the
amount of income tax owed and gives families a larger
tax refund. If you are an eligible family, be sure
to claim Earned Income Tax Credit when you file
your federal income tax return.
The Earned Income Tax Credit is called a refundable
tax credit. This means
that
even if the credit reduces your tax to zero, you
may still get a refund. For example, If Mary’s
federal income tax is $500 and her EITC credit
is $600 Mary will owe no income tax and still
get a refund of $100. Part-time workers or people
who did not work a full year should be particularly
aware that even if you don’t owe any income tax,
you should file for the Earned Income Credit because
you could be due a refund.
For
tax year 2007 eligible families are:
-
If you lived with more than one qualifying child
in 2007 and your family earned less than $37,783
($39,783-married, filing jointly) you can get
up to $4,716.
- If
you lived with one qualifying child in 2007
and your family earned less than $33,241 ($35,241)
($35,241-married, filing jointly) you can get
up to $2,853.
-
If you had no children living with you in 2007
and you erned less than $12,590 ($14,590-married,
filing jointly) you can get up to $428.
Advance
Provision
You can receive 40% of your annual Earned Income
Tax Credit as part of your weekly pay. For example:
are eligible for a $2000 annual credit, you
would receive $800 during the year in your paycheck.
Your paycheck would increase, in this particular
case, by about $15 a week or $65 a month. For
some families, this extra cash could be very
useful in keeping up with monthly bills. You
get the remaining 60% of the tax credit when
you file your income tax, but you must file
your 2006 tax return to claim any additional
credit.
The
Advance Earned Income Tax Credit (AEITC) for TY
2007 maximum credit the employer is allowed to
provide throughout the year with the employee's
pay is $1,712.
Note: You may be able to claim
a larger credit when you file your TY 2006 Form
1040 or Form 1040A because your employer cannot
give you more than $1,648 throughout the year
with your pay. You may also be able to claim
a larger credit if you have more than one qualifying
child. If you are working and:
1. You expect that your 2007 adjusted gross
income (AGI) and earned income will each be
less than $33,241 ($35,241 if you expect to
file a joint return for 2007),
2. You expect to have at least one qualifying
child, and you expect to qualify for the EITC
Fill
out the W-5 form and turn it in to your employer.
Download W-5 Form
(with Instructions)
Advance
EITC - more information
Free Tax Preparation
Download the EITC
poster
Charleston
Region Free Tax Sites and Hours of Operation for
2008
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