State representatives reminded working families today to claim the Earned Income Tax Credit on their 2009 taxes. Many families are also eligible to participate in a free tax filing program.
Workers with one child and earnings less than $35,463 in 2009 are eligible for a tax credit up to $3,043. Workers raising more than one child with income less than $40,295 can get up to a $5,028 credit. Working individuals who are not raising children in their home between the ages of 25 and 64 and had income less than $13,440 are eligible for a $457 tax credit.
The Earned Income Tax Credit is now the largest federal cash benefit to low-income workers, surpassing welfare benefits in total dollars nationwide. Three years ago, Iowa expanded eligibility for the EITC on state taxes and made the credit refundable to more Iowa families.
According to the Internal Revenue Service, about 25% of eligible workers don’t claim the credit. For more information or assistance on the EITC, call 1-800-829-8482 to find your local tax assistance site or log on to www.irs.gov.
A public-private partnership, the Free File Alliance, is also offering middle class families who meet certain income guidelines a fast, free and safe way to do their taxes online.
The program is made possible through a partnership between the IRS and the Free File Alliance. To learn more visit, www.freefile.irs.gov.